Upcoming Changes to 2022 HTS: Part 8 (Machinery of Chapter 85, Vehicles, Aircraft and Vessels)

(NOTE: Summaries of changes to other chapters will appear in upcoming issues of International Trade Today. See the annexes to the presidential proclamation, included in an International Trade Commission report, for a full list of changes. See the World Customs Organization's correlation table for a summary of changes at the six-digit level from the 2017 to the 2022 HS nomenclature, as well as short explanations of some changes. See 2201100060 for the first part of this summary, on chapters 1-14 of the tariff schedule. See 2201110039 for part two, covering chapters 15-24. No direct changes are being made to chapters 25-27. See 2201130043 for part three, covering chapters 28-38. See 2201140024 for part four, covering chapters 39-49. See 2201180054 for part five, covering chapters 50-64. See 2201190043 for part six, covering chapters 68-83. See 2201190044 for part seven, covering Chapter 84.)

New Definitions for Semiconductors, LEDs Added to Chapter 85, Heading Text for 8541 Amended

The 2022 Harmonized Tariff Schedule includes a new note defining “semiconductor devices” in Chapter 85. Old Note 9(a), which defined “diodes, transistors and similar semiconductor devices” is replaced by a new note, renumbered 12(a) due to the addition of other, unrelated new notes to Chapter 85. The new Note 12(a) defines the term as follows:

“(i) ‘Semiconductor devices’ are semiconductor devices the operation of which depends on variations in resistivity on the application of an electric field or semiconductor-based transducers.

Semiconductor devices may also include assembly of plural elements, whether or not equipped with active and passive device ancillary functions.

‘Semiconductor-based transducers’ are, for the purposes of this definition, semiconductorbased sensors, semiconductor-based actuators, semiconductor-based resonators and semiconductor-based oscillators, which are types of discrete semiconductor-based devices, which perform an intrinsic function, which are able to convert any kind of physical or chemical phenomena or an action into an electrical signal or an electrical signal into any type of physical phenomenon or an action.

“All the elements in semiconductor-based transducers are indivisibly combined, and may also include necessary materials indivisibly attached, that enable their construction or function.

“The following expressions mean:

“(1) ‘Semiconductor-based’ means built or manufactured on a semiconductor substrate or made of semiconductor materials, manufactured by semiconductor technology, in which the semiconductor substrate or material plays a critical and unreplaceable role of transducer function and performance, and the operation of which is based on semiconductor properties including physical, electrical, chemical and optical properties.

“(2) ‘Physical or chemical phenomena’ relate to phenomena, such as pressure, acoustic waves, acceleration, vibration, movement, orientation, strain, magnetic field strength, electric field strength, light, radioactivity, humidity, flow, chemicals concentration, etc.

“(3) ‘Semiconductor-based sensor’ is a type of semiconductor device, which consists of microelectronic or mechanical structures that are created in the mass or on the surface of a semiconductor and that have the function of detecting physical or chemical quantities and converting these into electric signals caused by resulting variations in electric properties or displacement of a mechanical structure.

“(4) ‘Semiconductor-based actuator’ is a type of semiconductor device, which consists of microelectronic or mechanical structures that are created in the mass or on the surface of a semiconductor and that have the function of converting electric signals into physical movement.

“(5) ‘Semiconductor-based resonator’ is a type of semiconductor device, which consists of microelectronic or mechanical structures that are created in the mass or on the surface of a semiconductor and that have the function of generating a mechanical or electrical oscillation of a predefined frequency that depends on the physical geometry of these structures in response to an external input.

“(6) ‘Semiconductor-based oscillator’ is a type of semiconductor device, which consists of microelectronic or mechanical structures that are created in the mass or on the surface of a semiconductor and that have the function of generating a mechanical or electrical oscillation of a predefined frequency that depends on the physical geometry of these structures.”

LEDs also defined in new note. The last paragraph of new note 12(a) to chapter 85 includes a definition for LEDs, as follows:

“(ii) ‘Light-emitting diodes (LED)’ are semiconductor devices based on semiconductor materials which convert electrical energy into visible, infra-red or ultra-violet rays, whether or not electrically connected among each other and whether or not combined with protective diodes. Light-emitting diodes (LED) of heading 8541 do not incorporate elements for the purposes of providing power supply or power control;"

Text of heading 8541 amended to reflect new terminology. The text of heading 8541, which covers semiconductor devices, LEDs and solar cells, among other things, is also amended to reflect the new terminology adopted in the 2022 tariff schedule. The new heading description is as follows:

“Semiconductor devices (for example, diodes, transistors, semiconductor-based transducers); photosensitive semiconductor devices, including photovoltaic cells whether or not assembled in modules or made up into panels; light-emitting diodes (LED), whether or not assembled with other light-emitting diodes (LED); mounted piezo-electric crystals; parts thereof:”

Slight Change to Definition for ‘Silicon-Based Sensors’

Renumbered along with the rest of note 9 as note 12, a paragraph defining “silicon-based sensors” at note 12(b)(iv)3(a) to Chapter 85 is slightly changed. The amended note now says:

“’Silicon-based sensors’ consist of microelectronic or mechanical structures that are created in the mass or on the surface of a semiconductor and that have the function of detecting physical or chemical phenomena and transducing these into electric signals, caused by resulting variations in electric properties or displacement of a mechanical structure. 'Physical or chemical phenomena’ relates to phenomena, such as pressure, acoustic waves, acceleration, vibration, movement, orientation, strain, magnetic field strength, electric field strength, light, radioactivity, humidity, flow, chemicals concentration, etc.”

The note had previously said the sensors “have the function of detecting physical or chemical quantities” and had said "’Physical or chemical phenomena’ relates to real world phenomena.” Otherwise the note is the same.

New Subheadings Added for Solar-Powered Generators

New subheadings are added under tariff provisions for generators under heading 8501 for solar-powered generators. Six-digit subheadings 8501.71 and 8501.72 are added for photovoltaic DC generators, and subheading 8501.80 is added for photovoltaic AC generators. Eight-digit subheadings and tariff rates for the new tariff provisions are as follows:

Photovoltaic DC generators:

• 8501.71.00 - Of an output not exceeding 50 W (2.5%)
• 8501.72.10 - Of an output exceeding 50 W but not exceeding 750 W (2.5%)
• 8501.72.20 - Of an output exceeding 750 W but not exceeding 75 kW (2%)
• 8501.72.30 - Of an output exceeding 75 kW but not exceeding 375 kW (2.5%)
• 8501.72.90 - Other (i.e., output exceeding 375 kW) (2%)

Photovoltaic AC generators:

• 8501.80.10 - Of an output not exceeding 75 kVA (2.5%)
• 8501.80.2000 - Of an output exceeding 75 kVA but not exceeding 375 kVA (2.5%)
• 8501.80.30 00 - Of an output exceeding 375 kVA but not exceeding 750 kVA (2.5%)
• 8501.80.90 00 - Other (i.e., of an output exceeding 750 kVA) (2.4%).

The superior text for subheadings 8501.31.80, 8501.32.60, 8501.33.60 and 8501.34.60 is renamed “other DC motors; DC generators, other than photovoltaic generators,” and the subheadings are renumbered 8501.31.81, 8501.32.61, 8501.33.61 and 8501.34.61 to reflect that solar-powered generators are no longer classifiable in the subheadings.

Likewise, the superior text for subheadings 8501.61.00, 8501.62.00, 8501.63.00 and 8501.64.00 is renamed “AC generators (alternators), other than photovoltaic generators,” and the subheadings are renumbered 8501.61.01, 8501.62.01, 8501.63.01 and 8501.64.01 to reflect that solar-powered generators are no longer classifiable in the subheadings.

Tariff Subheadings for Nickel-Iron Storage Batteries Removed From Tariff Schedule

Subheadings 8507.40.40 and 8507.40.80, which had covered nickel-iron strorage batteries for electric vehicles and other nickel-iron storage batteries, respectively, are deleted from the tariff schedule because of a low trade volume, according to the WCO.

Subheadings 8507.80.40 and 8507.80.81, which cover “other” storage batteries, now including nickel-iron storage batteries, are renumbered 8507.80.41 and 8507.80.82.

New Tariff Provisions for Hot Isostatic Presses, Electron Beam, Plasma and Vacuum Arc Furnaces

Tariff provisions for several types of electric furnaces are added to heading 8514. New subheadings cover hot isostatic presses, electron beam furnaces and plasma and vacuum arc furnaces.

Hot isostatic presses. Subheading 8514.10.00 for resistance heated furnaces and ovens (electric) is renumbered 8514.11, and is subdivided into new subheading 8514.11.00 for hot isostatic presses, and 8514.19.00 for “other” resistance heated furnaces and ovens.

Electron beam, plasma and vacuum arc furnaces. Subheading 8514.30 for “other furnaces and ovens,” which is currently broken out into subheadings for furnaces and ovens used in the manufacture for printed circuits and “other” furnaces and ovens,” is eliminated from the tariff schedule. In its place are added three new subheadings covering electron beam furnaces (8514.31), plasma and vacuum arc furnaces (8514.32) and “other” furnaces and ovens (8514.39).

Each of these subheadings is in turn broken out the same way as former subheading 8514.30, as follows:

Electron beam furnaces:

• 8514.31.10 - Of a kind used solely or principally for the manufacture of printed circuits or printed circuit assemblies (free)
• 8514.31.90 - Other (1.3%)

Plasma and vacuum arc furnaces:

• 8514.32.10 - Of a kind used solely or principally for the manufacture of printed circuits or printed circuit assemblies (free)
• 8514.32.90 - Other (1.3%)

Other:

• 8514.39.10 - Of a kind used solely or principally for the manufacture of printed circuits or printed circuit assemblies (free)
• 8514.39.90 - Other (1.3%).

New Tariff Provision Created for ‘Smartphones’

A new tariff subheading specifically describing “smartphones” is added to the 2022 tariff schedule, as well as a new note to Chapter 85 that defines the term.

Subheading 8517.12.00, which had previously covered “telephones for cellular networks or for other wireless networks,” is deleted from the tariff schedule. In its place is added new subheading 8517.13.00 for “smartphones,” and new subheading 8517.14.00 for “other telephones for cellular networks or for other wireless networks.” Both subheadings are duty free.

New note 5 to Chapter 85 provides a definition for smartphones. The new note defines the term as “telephones for cellular networks, equipped with a mobile operating system designed to perform the functions of an automatic data processing machine such as downloading and running multiple applications simultaneously, including third-party applications, and whether or not integrating other features such as digital cameras and navigational aid systems.”

Heading 8517 is also renamed so it specifically mentions smartphones in the text of the heading.

New Subheading Covers Aerials and Aerial Reflectors for Cellular and Wireless Networks

Also within heading 8517, subheading 8517.70, which covered “parts” of cellular and wireless telephone sets and apparatus for the transmission or reception of voice, images or data, is replaced by new subheadings 8517.71.00 for “aerials and aerial reflectors of all kinds; parts suitable for use therewith,” and 8517.79.00 for “other” parts of goods of heading 8517.

Answering Machines Removed From Tariff Schedule

Subheading 8519.50.00 for “telephone answering machines” is eliminated from the tariff schedule. The WCO says the removal of the subheading is because there’s a low volume of trade. Subheading 8519.81.40 for “other” apparatus for recording or reproducing sound is renumbered 8519.81.41 to reflect that answering machines are now classified there.

New Heading 8524 Added for Flat-Panel Displays

A new heading is added to Chapter 85 of the 2022 Harmonized Tariff Schedule to cover “flat panel display modules, whether or not incorporating touch-sensitive screens.” A new note to Chapter 85 is added to define the term for the purposes of classification in the new heading, specifying that it covers panels meant to be incorporated into other articles, but does not include display moduels equipped with components for converting video signals “or have otherwise assumed the character of goods of other headings.” Heading 8529 is also amended to provide for parts of flat-panel displays under the new subheading.

The new heading is split based on whether or not the flat-panel display is without drivers or control circuits (8524.11 through 8524.19) or “other” (i.e., with drivers or control circuits) (8524.91 through 8524.99). Each of these provisions is further divided into subheadings for liquid crystal flat panel displays, organic light-emitting diode flat panel displays, and other flat panel displays, as follows:

Without drivers or control circuits:

• 8524.11.10 - Flat panel display modules, of liquid crystals, other than flat panel display modules for articles of subheadings 8528.59 (monitors not for ADPs), 8528.69 (projectors not for ADPS), 8528.72 and 8528.73 (TVs) (free)
• 8524.11.90 - Other flat panel display modules, of liquid crystals (4.5%)
• 8524.12.00 - Flat panel display modules, of organic light-emitting diodes (OLED) (free)
• 8524.19.00 - Other flat panel display modules without drivers or control circuits (free)

Other (i.e., with drivers or control circuits):

• 8524.91.10 - Flat panel display modules, of liquid crystals, other than flat panel display modules for articles of subheadings 8528.59 (monitors not for ADPs), 8528.69 (projectors not for ADPS), 8528.72 and 8528.73 (TVs) (free)
• 8524.91.90 - Other flat panel display modules, of liquid crystals (4.5%)
• 8524.92.00 - Flat panel display modules, of organic light-emitting diodes (OLED) (free)
• 8524.99.00 - Other flat panel display modules without drivers or control circuits (free).

New note defines flat-panel display modules. New note 7 to Chapter 85 defines “flat panel display modules” for the purposes of heading 8524 as “devices or apparatus for the display of information equipped at a minimum with a display screen, which are designed to be incorporated into articles of other headings prior to use. Display screens for flat panel display modules include, but are not limited to, those which are flat, curved, flexible, foldable or stretchable in form. Flat panel display modules may incorporate additional elements, including those necessary for receiving video signals and the allocation of those signals to pixels on the display. However, heading 8524 does not include display modules which are equipped with components for converting video signals (e.g., a scaler IC, decoder IC or application processer) or have otherwise assumed the character of goods of other headings.”

The note goes onto say that, “for the classification of flat panel display modules defined in this Note, heading 8524 shall take precedence over any other heading in the tariff schedule.”

Parts of flat panel display modules classifiable in heading 8529. Heading 8529 is also amended to also cover parts of flat panel display modules of heading 8524. The heading description now says it covers “parts suitable for use solely or principally with the apparatus of headings 8524 to 8528,” rather than 8525-8528.

New language is added to note 2(b) to section XVI to specify that “parts which are suitable for use solely or principally with the goods of heading 8524 are to be classified in heading 8529.”

Several subheadings within heading 8529 are renumbered to reflect the changes in classification. Subheading 8529.90.22 is redesignated as 8529.90.21, subheading 8529.90.54 is renumbered 8529.90.55, subheading 8529.90.75 is now 8529.90.77, subheading 8529.90.86 is renumbered 8529.90.87 and subheading 8529.90.99 is redesignated as 8529.90.98.

Flat panel displays removed from heading 8543. The new classification scheme for flat panel displays results in transfer of the articles from many headings of Chapters 84, 85, 87, 88 and 90.

• Heading 8543.70.87 is amended to remove language saying it covers “flat panel displays other than for articles of heading 8528, except for subheadings 8528.52 or 8528.62,” and is renumbered 8543.70.88.
• A reference in the text for heading 9013 to “liquid crystal devices not constituting articles provided for more specifically in other headings” is removed so the heading now only covers “lasers, other than laser diodes; other optical appliances and instruments, not specified or included elsewhere” in Chapter 90. Subheadings 9013.80.70 and 9013.90.50 for flat panel displays and parts of flat panel displays are deleted, and subheading 9013.80.90 is renumbered 9013.80.91.

Tariff Provisions for Television and Video Cameras, Digital Cameras Rearranged

Provisions in Chapter 85 on “television cameras, digital cameras and video camera recorders” are reshuffled in the 2022 tariff schedule. New subheadings are added for night vision goods, high-speed cameras and radiation-hardened goods “to facilitate the monitoring and control of dual use items,” according to the WCO. New subheading notes to Chapter 85 define each of those terms.

New subheadings 8525.81 through 8525.89 now cover television cameras, digital camers and video camera recorders. Subheadings under the new scheme are as follows:

• 8525.81.00 - High-speed goods as specified in subheading note 1 to this chapter
• 8525.82.00 - Other, radiation-hardened or radiation-tolerant goods as specified in subheading note 2 to this chapter
• 8525.83.00 - Other, night vision goods as specified in subheading note 3 to this chapter
• 8525.89.10 - Other, gyrostabilized television cameras
• 8525.89.20 - Other, studio television cameras excluding shoulder-carried and other portable cameras
• 8525.89.30 - Other television cameras
• 8525.89.40 - Other, digital still image video cameras
• 8525.89.50 - Other television cameras, digital cameras and video camera recorders.

High-speed cameras. New subheading note 1 is added to Chapter 85, saying “subheading 8525.81 covers only high-speed television cameras, digital cameras and video camera recorders having one or more of the following characteristics:

• writing speed exceeding 0.5 mm per microsecond;
• time resolution 50 nanoseconds or less;
• frame rate exceeding 225,000 frames per second.

Radiation-hardened cameras. New subheading note 2 to Chapter 85 defines “radiation-hardened or radiation-tolerant television cameras, digital cameras and video camera recorders” for the purposes of subheading 8525.82 as “designed or shielded to enable operation in a high-radiation environment. These cameras are designed to withstand a total radiation dose of at least 50 x 10[to the power of 3] Gy (silicon)(5 x 10[to the power of 6] RAD (silicon)), without operational degradation.”

Night-vision cameras. Finally, sheading note 3 to Chapter 85 says, ”Subheading 8525.83 covers night vision television cameras, digital cameras and video camera recorders which use a photocathode to convert available light to electrons, which can be amplified and converted to yield a visible image. This subheading excludes thermal imaging cameras (generally subheading 8525.89).”

New Scheme for Classification of ‘LED Light Sources’

The term “light-emitting diode (LED) light sources” makes its first appearance in the 2022 tariff schedule, and is intended to encompass LED lamps as well as LED modules. Heading 8539, which previously listed LED “lamps” among the articles covered by the heading, now instead lists “light-emitting diode (LED) light sources” instead.

Subheading 8539.50, which had previously covered LED lamps, is replaced by new subheadings for “light-emitting diode (LED) light sources.” Subheading 8539.51.00 covers LED modules and is duty-free. Subheading 8539.52.00 covers LED lamps, and is dutiable at 2%.

New note defines LED light sources, modules and lamps. New note 11 to Chapter 85 defines the new terminology as follows: “For the purposes of heading 8539, the expression ‘light-emitting diode (LED) light sources’ covers:

“(a) ‘Light-emitting diode (LED) modules’ which are electrical light sources based on light-emitting diodes (LED) arranged in electrical circuits and containing further elements like electrical, mechanical, thermal or optical elements. They also contain discrete active elements, discrete passive elements, or articles of heading 8536 or 8542 for the purposes of providing power supply or power control. Light-emitting diode (LED) modules do not have a cap designed to allow easy installation or replacement in a luminaire and ensure mechanical and electrical contact.

“(b) ‘Light-emitting diode (LED) lamps’ which are electrical light sources containing one or more LED modules containing further elements like electrical, mechanical, thermal or optical elements. The distinction between light-emitting diode (LED) modules and light-emitting diode (LED) lamps is that lamps have a cap designed to allow easy installation or replacement in a luminaire and ensure mechanical and electrical contact."

Bulbs and tubes subheading now covers LED light sources. Heading 7011, which covered “glass envelopes (including bulbs and tubes) … for electric lamps, cathode-ray tubes or the like” now covers glass envelopes for “electric lamps and light sources, cathode-ray tubes or the like.”

'Light sources' excluded from Chapter 94. Note 1(f) to Chapter 94, which excludes "lamps or lighting fittings" of Chapter 85 from classification in Chapter 94, is amended so it now excludes "lamps or light sources and parts thereof" of Chapter 85.

Changes to Classification of Solar Cells, Modules, Transducers in Heading 8541

Changes prescribed by the WCO at the six-digit level to ensure separate classification in all member tariff schedules result in changes to the U.S. classification scheme for solar cells and modules in heading 8541. A new provision is also added for semiconductor-based transducers.

Previously broken out at the 10-digit level from tariff provisions for diodes under subheading 8541.40.60, photovoltaic cells and modules are now classified in their own subheadings at the six digit level, among other changes to heading 8541. Subheadings 8541.40 and 8541.50 are deleted from the tariff schedule, and replaced by the following under the superior text, “Photosensitive semiconductor devices, including photovoltaic cells whether or not assembled in modules or made up into panels; light-emitting diodes (LED)”:

• 8541.41.00 - Light-emitting diodes (LED)
• 8541.42.00 - Photovoltaic cells not assembled in modules or made up into panels
• 8541.43.00 - Photovoltaic cells assembled in modules or made up into panels
• 8541.49.10 - Other diodes
• 8541.49.70 - Other, transistors
• 8541.49.80 - Other, optical coupled isolators
• 8541.49.95 - Other, other photosensitive semiconductor devices.

New subheadings 8541.51 and 8541.59 are under the superior text “other semiconductor devices” (i.e., other than non-photosenstive diodes, transistors, thyristors, diacs, triacs and photosensitive semiconductor devices), with new subheadings as follows:

• 8541.51.00 - Semiconductor-based transducers
• 8541.59.00 – Other semiconductor devices.

“The expansion of the scope of heading 85.41 to provide for semiconductor-based transducers entails the possible transfer of certain products currently covered by other headings of the Nomenclature (in particular, but not limited to, headings 84.22, 84.31, 84.43, 84.50, 84.66, 84.73, 84.76, 85.04, 85.17, 85.18, 85.22, 85.29, 85.30, 85.31, 85.35, 85.36, 85.37, 85.38, 85.43, 85.48, 90.25, 90.26, 90.30, 90.31, 90.32, 90.33, 93.05, 93.06 and 95.04) to subheadings 8541.51 and 8541.59,” the WCO said.

E-Cigarettes, Vaporizing Devices Added to Heading 8543

New subheading 8543.40.00 is added for “electronic cigarettes and similar personal electric vaporizing devices” to provisions on electrical machines with individual functions not elsewhere specified under heading 8543. The new subheading is dutiable at 2.6%. Subheading 8543.70.99, the residual “other” subheading for electrical machines with individual functions not elsewhere specified, is renumbered 8543.70.98.

New Heading 8549 Covers Electrical and Electronic Waste and Scrap

A new separate heading is created in the 2022 tariff schedule for “electrical and electronic waste and scrap.” Creation of the new heading entails a move from several other tariff subheadings, which are amended so they don’t cover goods subject to the new heading 8549. New notes are also added to the tariff schedule to define coverage of the new heading.

The new heading is divided into four sections: subheadings 8549.11 through 8549.49 cover “waste and scrap of primary cells, primary batteries and electric accumulators; spent primary cells, spent primary batteries and spent electric accumulators.”

Subheadings 8549.21 through 8549.29 cover electrical and electronic waste, “of a kind used principally for the recovery of precious metal.” Subheadings 8549.31 through 8549.39 cover waste made of up “other electrical and electronic assemblies and printed circuit boards.” Subheadings 8549.91 through 8549.99 cover other electric and electronic waste.

The latter three sections are each subdivided based on whether the waste contains “primary cells, primary batteries, electric accumulators, mercury-switches, glass from cathode-ray tubes or other activated glass, or electrical or electronic components containing cadmium, mercury, lead or polychlorinated biphenyls (PCBs) (8549.21.00, 8549.31.00 and 8549.91.00), or does not (8549.29.00, 8549.39.00 and 8549.99.00).

Waste of batteries, cells and accumulators. New subheading note 5 to Chapter 85 defines “spent primary cells” for the purposes of subheadings 8549.11 to 8549.19 as “spent primary cells, spent primary batteries and spent electric accumulators: are those which are neither usable as such because of breakage, cutting-up, wear or other reasons, nor capable of being recharged.”

Such articles are provided for in new heading 8549 as follows:

• 8549.11.10 - Waste and scrap of lead-acid accumulators and spent lead-acid accumulators, for recovery of lead
• 8549.11.90 - Waste and scrap of lead-acid accumulators and spent lead-acid accumulators, other
• 8549.12.40 - Other, containing lead, cadmium or mercury, for recovery of lead
• 8549.12.80 - Other, containing lead, cadmium or mercury, other
• 8549.13.00 - Sorted by chemical type and not containing lead, cadmium or mercury
• 8549.14.00 - Unsorted by chemical type and not containing lead, cadmium or mercury
• 8549.19.00 - Other.

Heading 8548, which had previously covered waste and scrap of primary cells, primary batteries and electric storage batteries, as well as spent primary cells, spent primary batteries and spent electric storage batteries, is amended so it now only covers “electrical parts of machinery or apparatus, not specified or included elsewhere in this chapter. All subheadings previously included under the heading are deleted, and replaced by the single subheading 8548.00.00 for “electrical parts of machinery or apparatus, not specified or included elsewhere in this chapter.”

Note 10 to Chapter 85, which had defined "spent primary cells, spent primary batteries and spent electric storage batteries" for the purposes of heading 8549, is also deleted from the tariff schedule.

Other wastes of heading 8549. The remainder of heading 8549 for electric and electronic waste is divided as follows:

• 8549.21.00 - Of a kind used principally for the recovery of precious metal, containing primary cells, primary batteries, electric accumulators, mercury-switches, glass from cathode-ray tubes or other activated glass, or electrical or electronic components containing cadmium, mercury, lead or polychlorinated biphenyls (PCBs)
• 8549.29.00 - Of a kind used principally for the recovery of precious metal, other
• 8549.31.00 - Other electrical and electronic assemblies and printed circuit boards, containing primary cells, primary batteries, electric accumulators, mercury-switches, glass from cathode-ray tubes or other activated glass, or electrical or electronic components containing cadmium, mercury, lead or polychlorinated biphenyls (PCBs)
• 8549.39.00 - Other electrical and electronic assemblies and printed circuit boards, other
• 8549.91.00 - Other electric and electronic waste, containing primary cells, primary batteries, electric accumulators, mercury-switches, glass from cathode-ray tubes or other activated glass, or electrical or electronic components containing cadmium, mercury, lead or polychlorinated biphenyls (PCBs)
• 8549.99.00 - Other electric and electronic waste, other.

Section note defines electric and electronic waste. New note 6 to Section XVI of the tariff schedule provides that, “Throughout the tariff schedule, ‘electrical and electronic waste and scrap’ means electrical and electronic assemblies, printed circuit boards, and electrical or electronic articles that:

“(a) have been rendered unusable for their original purposes by breakage, cutting-up or other processes or are economically unsuitable for repair, refurbishment or renovation to render them fit for their original purposes; and

“(b) are packaged or shipped in a manner not intended to protect individual articles from damage during transportation, loading and unloading operations.

“(B) Mixed consignments of ‘electrical and electronic waste and scrap and other waste and scrap are to be classified in heading 8549.

“(C) This section does not cover municipal waste, as defined in note 4 to chapter 38.”

Notes added throughout tariff schedule to exclude electric and electronic scrap. Several notes are added to the tariff schedule and various other provisions are amended to exclude electric and electronic waste now classifiable in heading 8549.

• Note 1(f) to Chapter 26 is amended so it now says wastes of heading 8549 are among the waste or scrap of precious metal excluded from classification in the chapter.
• New note 4(a) to Chapter 38 says, “individual materials or articles segregated from the waste, for example wastes of plastics, rubber, wood, paper, textiles, glass or metals, electrical and electronic waste and scrap (including spent batteries) which fall in their appropriate headings of the tariff schedule.”
• Subheading 3825.10.00 for “municipal waste” is renumbered 3825.10.01, as municipal waste is not classifiable in heading 8549, per new note 6 to Section XVI.
• Subheading 3825.90.00 for “other” residual chemical products and wastes is renumbered 3825.90.01 to reflect the removal of electric and electronic waste from classification under the subheading.
• Subheading 7001.00 is amended to say it excludes “glass from cathode-ray tubes or other activated glass of heading 8549.” Subheading 7001.00.50 is renumbered 7001.00.51.
• Heading 7112 is amended to exclude goods of 8549 from the “waste and scrap containing precious metal or precious metal compounds, of a kind used principally for the recovery of precious metal” otherwise covered under the heading. Subheadings 7112.30.00, 7112.91.00, 7112.92.00 and 7112.99.00 are redesignated as 7112.30.01, 7112.91.01, 7112.92.01 and 7112.99.01, respectively.

Provisions on Freight Trucks Reorganized to Include Electric Vehicles

Subheading 8701.20 for road tractors for semi-trailers and most of heading 8704 for motor vehicles for the transport of goods are reshuffled so they now provide for electric vehicles. Provisions for road tractors for semi-trailers are broken out by engine type for the first time, while provisions on hybrid-electric and electric vehicles are added for motor vehicles for goods transport on top of those for diesel and spark-ignition engines.

Road tractors. Subheading 8701.20 for “road tractors for semi-trailers” is replaced by new subheadings 8701.21 through 8701.29. The new subheadings, all dutiable at 4%, cover road tractors for semi-trailers:

• 8701.21.00 - With only compression-ignition internal combustion piston engine (diesel or semi-diesel)
• 8701.22.00 - With both compression-ignition internal combustion piston engine (diesel or semi-diesel) and electric motor as motors for propulsion
• 8701.23.00 - With both spark-ignition internal combustion piston engine and electric motor as motors for propulsion
• 8701.24.00 - With only electric motor for propulsion
• 8701.29.00 - Other.

Motor vehicles for transport of goods. Provisions for hybrid and electric vehicles are also added to heading 8704 for motor vehicles for the transport of goods. Subheading 8704.10 for “dumpers designed for off-highway use” is not affected by the changes, but otherwise much of the heading in the 2022 tariff schedule is renumbered, changed or entirely new.

Subheadings on vehicles for diesel, spark-ignition engines renumbered. Provisions under subheadings 8704.21 through 8704.32 are essentially renumbered, though the ITC annex says the subheadings are deleted and replaced, which could affect classification at the 10-digit level.

The superior text to subheadings 8704.21 through 8704.23 is amended so it says it covers motor vehicles for the transport of goods with “only” compression-ignition internal combustion piston engines (diesel or semi-diesel). Subheading 8704.21.00 becomes 8704.21.01, 8704.22.10 is renumbered 8704.22.11, 8704.22.50 becomes 8704.22.51, and 8704.23.00 is renumbered 8704.23.01.

The superior text to subheadings 8704.31 through 8704.32 is amended so it says it covers motor vehicles for the transport of goods with “only” spark-ignition internal combustion piston engines. Subheading 8704.31.00 becomes 8704.31.01, and 8704.32.00 is renumbered 8704.32.01.

New subheadings added for hybrid, electric vehicles. New subheadings 8704.41 through 8704.43 are added for motor vehicles for movement of cargo with both compression-ignition and electric motors for propulsion. New subheadings 8704.51 through 8704.52 are added for vehicles with both spark-ignition motors for propulsion. New subheading 8704.60 covers motor vehicles for transport of goods with only electric motors for propulsion. The new eight-digit subheadings, all dutiable at 25%, are as follows:

• 8704.60.00 - Other, with only electric motor for propulsion

Other, with both compression-ignition internal combustion piston engine (diesel or semi-diesel) and electric motor as motors for propulsion:

• 8704.41.00 - G.V.W. not exceeding 5 metric tons.
• 8704.42.00 - G.V.W. exceeding 5 metric tons but not exceeding 20 metric tons
• 8704.43.00 - G.V.W. exceeding 20 metric tons

Other, with both spark-ignition internal combustion piston engine and electric motor as motors for propulsion:

• 8704.51.00 - G.V.W. not exceeding 5 metric tons
• 8704.52.00 - G.V.W. exceeding 5 metric tons.

Subheading 8704.90.00 for “other” motor vehicles for the transport of goods is renumbered 8704.90.01 to reflect the new scheme.

Vehicle Windshields Broken Out Into ‘New Parts and Accessories’ Subheading

A new subheading in heading 8708 for parts and accessories of headings 8701 to 8705 is added for motor vehicle windows. Subheading 8708.22.0000 covers “front windscreens (windshields), rear windows and other windows specified in subheading note 1 to this chapter,” and is dutiable at 2.5%.

New subheading note 1 to Chapter 87 defines what’s covered by the subheading:

“Subheading 8708.22.00 covers: (a) front windscreens (windshields), rear windows and other windows, framed; and (b) front windscreens (windshields), rear windows and other windows, whether or not framed, incorporating heating devices or other electrical or electronic devices, when suitable for use solely or principally with the motor vehicles of headings 8701 to 8705.”

Subheading 8708.29.50 for other parts and accessories of vehicle bodies is renumbered 8708.29.51 to reflect the change.

Vehicle windows not classifiable in Chapter 70. New notes 1(d) and 1(e) exclude vehicle windows from classification in Chapter 70. Note 1(d) excludes “front windscreens (windshields), rear windows and other windows, framed, for vehicles of chapters 86 to 88.” Note 1(e) excludes “front windscreens (windshields), rear windows and other windows, whether or not framed, incorporating heating devices or other electrical or electronic devices, for vehicles of chapters 86 to 88.” Subheading 7007.21.10 is redesignated as 7007.21.11, and subheading 7007.21.50 is renumbered 7007.21.51.

‘Reciprocating’ Removed From Engine Descriptions Throughout Chapter 87

The word “reciprocating” is removed from all descriptions of internal combustion piston engines within Chapter 87. The change affects the article descriptions of subheadings 8702.30, 8703.40.00, 8703.60.00, 8711.10.00, 8711.20.00, 8711.30.00, 8711.40, and 8711.50.00 and the superior text to subheadings 8703.21 through 8703.24.

New Heading 8806 Created for Drones

A new heading is created in Chapter 88 for unmanned aerial vehicles (UAVs). New 8806 covers “unmanned aircraft,” with new notes added to Chapter 88 for aircraft to define terms used in the new heading.

New note 1 to Chapter 88 defines unmanned aircraft for the purposes of the chapter as any aircraft, other than those of heading 8801, designed to be flown without a pilot on board. They may be designed to carry a payload or equipped with permanently integrated digital cameras or other equipment which would enable them to perform utilitarian functions during their flight.

The new heading is divided into three parts: subheading 8806.10.00 covers unmanned passenger aircraft, subheadings 8806.21 through 8806.29 cover other unmanned aircraft for remote-controlled flight only, and 8806.91 through 8806.99 cover other unmanned aircraft. New subheadings within heading 8806 are as follows (all duty-free):

• 8806.10.00 - Unmanned aircraft designed for the carriage of passengers

Other, for remote-controlled flight only:

• 8806.21.00 - With maximum take-off weight not more than 250 g
• 8806.22.00 - With maximum take-off weight more than 250 g but not more than 7 kg
• 8806.23.00 - With maximum take-off weight more than 7 kg but not more than 25 kg
• 8806.24.00 - With maximum take-off weight more than 25 kg but not more than 150 kg
• 8806.29.00 - Other

Other:

• 8806.91.00 - With maximum take-off weight not more than 250 g
• 8806.92.00 - With maximum take-off weight more than 250 g but not more than 7 kg
• 8806.93.00 - With maximum take-off weight more than 7 kg but not more than 25 kg
• 8806.94.00 - With maximum take-off weight more than 25 kg but not more than 150 kg
• 8806.99.00 - Other.

Maximum take-off weight defined. With the new heading largely organized by “maximum take-off weight,” new subheading note 2 to Chapter 88 defines the term for the purposes of the relevant subheadings in heading 8806 as: “the maximum weight of the machine in normal flying order, at take-off, including the weight of payload, equipment and fuel.

Heading 8802 is amended to exclude drones. The text of heading 8802 is amended so it no longer includes drones, now classifiable in heading 8806. Heading 8802 now covers “other aircraft (for example, helicopters, airplanes, except unmanned aircraft of heading 8806); spacecraft (including satellites) and suborbital and spacecraft launch vehicles.”

Subheadings for aircraft within heading 8802 are renumbered to reflect the removal of drones. Subheading 8802.11.00 is redesignated as 8802.11.01, subheading 8802.12.00 is renumbered 8802.12.01, subheading 8802.20.00 is now 8802.20.01, subheading 8802.30.00 is redesignated as 8802.30.01, and subheading 8802.40.00 is renumbered 8802.40.01. The remaining subheading in the heading, 8802.60, is not renumbered because it covers spacecraft, and is not affected by the new classification scheme for drones.

Drones excluded from classification in Chapter 95. New note 1(p) to Chapter 95 excludes drones from classification in that chapter.

Heading for Aircraft and Spacecraft Parts Moved to End of Chapter

The heading for parts of aircraft and spacecraft, previously heading 8803 following aircraft and spacecraft of heading 8801 and 8802, is now moved to new heading 8807 to maintain its position after headings for aircraft and spacecraft after the addition of new heading 8806 for unmanned aircraft.

Heading 8803 for “parts of goods of heading 8801 or 8802” is deleted from the tariff schedule, with new heading 8807 for “parts of heading 8801, 8802 or 8806” maintaining the same basic structure at the eight-digit level:

• 8807.10.00 - Propellers and rotors and parts thereof
• 8807.20.00 - Undercarriages and parts thereof
• 8807.30.00 - Other parts of airplanes, helicopters or unmanned aircraft
• 8807.90.30 - Other, Parts of communications satellites
• 8807.90.90 - Other, Other parts of heading 8801, 8802 or 8806.

Reorganization of Heading 8903 for Yachts, Pleasure Boats, Row Boats and Canoes

Heading 8903 for “yachts and other vessels for pleasure or sports,” as well as “row boats and canoes” is reorganized to account for the addition by the WCO of new six-digit subheadings for inflatable boats, sailboats and motorboats so they are separately classified by all WCO HS members (they were already separately classified by the U.S. at the eight-digit level). The boat size thresholds that previously delineated between subheadings in the tariff schedule are also modified.

New subheadings 8903.11 through 8903.19 cover inflatable boats, subheadings 8903.21 through 8903.23 cover sailboats and subheadings 8903.31 through 8903.33 cover motorboats. Subheading 8903 covers other boats, including canoes, row boats and outboard motorboats. The new tariff provisions are as follows:

Inflatable (including rigid hull inflatable) boats:

• 8903.11.00 - Inflatable boats fitted or designed to be fitted with a motor, unladen (net) weight (excluding the motor) not exceeding 100 kg (2.4%)
• 8903.12.00 - Inflatable boats not designed for use with a motor and unladen (net) weight not exceeding 100 kg (2.4%)
• 8903.19.00 - Other inflatable boats (2.4%)

Sailboats, other than inflatable, with or without auxiliary motor:

• 8903.21.00 - Sailboats of a length not exceeding 7.5 m (1.5%)
• 8903.22.00 - Sailboats of a length exceeding 7.5 m but not exceeding 24 m (1.5%)
• 8903.23.00 - Sailboats of a length exceeding 24 m (1.5%)

Motorboats, other than inflatable, not including outboard motorboats:

• 8903.31.00 - Motorboats of a length not exceeding 7.5 m (1.5%)
• 8903.32.00 - Motorboats of a length exceeding 7.5 m but not exceeding 24 m (1.5%)
• 8903.33.00 - Motorboats of a length exceeding 24 m (1.5%)

Other, of a length not exceeding 7.5 m:

• 8903.93.05 - Canoes which are not of a type designed to be principally used with motors or sails (free)
• 8903.93.15 - Other (row boats) which are not of a type designed to be principally used with motors or sails (2.7%)
• 8903.93.20 - Outboard motorboats (1%)
• 8903.93.90 - Other (1%)

Other (7.5 m or longer)

• 8903.99.06 - Canoes which are not of a type designed to be principally used with motors or sails (free)
• 8903.99.16 - Other (row boats) which are not of a type designed to be principally used with motors or sails (2.7%)
• 8903.99.21 - Outboard motorboats (1%)
• 8903.99.91 - Other (1%).