The broadest set of changes to tariff classification in five years is set to take effect toward the end of January, as the latest set of amendments to the World Customs Organization's Harmonized System tariff nomenclature is implemented in the Harmonized Tariff Schedule of the U.S. Announced by a presidential proclamation published Dec. 28, the changes are slated to take effect 30 days after that, on Jan. 27 (see 2112270032). This is the first part of International Trade Today's multi-part summary, covering fish and seafood products and vegetable products of Chapters 1-14 of the HTS.
The Consumer Product Safety Commission is proposing to add window covering cords that don't meet certain requirements of the relevant industry standard to its substantial product hazard list. If the rule is finalized, stock and custom window coverings that do not meet industry standards for operating cord length, inner cord size and labeling will be subject to refusal of admission, and importers and manufacturers that import hazardous window coverings would be subject to CPSC corrective action plans and penalties. Comments are due March 23.
In order for a vehicle assembled in North America to be originating, six of seven super core parts -- such as the engine, transmission and suspension system, steering system and body -- have to be at least 75% North American, once the transition from NAFTA to USMCA is done.
Gary Yacoubian, CEO of high-end speaker company SVS wants people to imagine going to bed one night, “and you wake up the next morning, and your cost of goods just went up by 15%,” he told a CES 2022 trade and supply chain workshop Jan. 5 of the Section 301 tariffs on finished speakers and subwoofers his company imports from China. Speakers and subwoofers with List 4A tariff exposure were originally dutied at 10% when they took effect in September 2019, and were later raised to 15%, then cut to 7.5% with the February 2020 enactment of the phase one trade deal with China.
BMW North America is unable to claim substitution unused merchandise drawback on motor vehicles owned and exported by BMW Manufacturing Co., CBP said in a recently released ruling dated Nov. 30. BMW NA planned to "substitute the exported motor vehicles owned by BMW MC for motor vehicles imported and duty paid by BMW NA" and asked for CBP input on whether that is allowed.
CBP detained a total of 1,469 shipments during fiscal year 2021, due to the possible use of forced labor on the goods, the agency said in an update on FY21 statistics. The agency also "processed approximately $2.8 trillion of imports, an increase of nearly 17 percent compared to the same period in Fiscal Year 2020," it said. "Overall, CBP collected approximately $93.8 billion in duties, taxes, and other fees on behalf of the U.S. government in FY2021, representing a 133% increase over a five-year period." CBP collected $74.4 billion in FY20.
DHS published its fall 2021 regulatory agenda for CBP with only one new trade-related action mentioned. The department said it intends to consolidate the regulatory authorities over immigration ports of entry, customs ports of entry and customs stations. The DHS secretary has authority over the customs ports of entry and stations, while the CBP commissioner oversee the immigration ports of entry, it said. "CBP is exploring ways to consolidate the authority to manage the two types of ports."
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The International Trade Commission posted the 2022 Preliminary Edition of the Harmonized Tariff Schedule. The new HTS does not include the five-year World Customs Organization Harmonized System update, which will take effect toward the end of January at the end of a 30-day period following their proclamation Dec. 27 (see 2112270032). It does, however, implement annual changes to 10-digit "statistical" provisions of the tariff schedule, as well as the removal of Ethiopia, Mali and Guinea from the African Growth and Opportunity Act preferences program and a new tariff-rate quota system for iron and steel and aluminum from the EU. These changes took effect Jan. 1.
International Trade Today is providing readers with the top 20 stories published in 2021 in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference numbers.