Changes to the U.S. tariff schedule that implement an update to the World Customs Organization's Harmonized System tariff nomenclature are set to take effect Jan. 27, according to the presidential proclamation scheduled for publication in the Federal Register Dec. 28. The full list of coming changes are described in a newly released report from the International Trade Commission.
The White House released its much anticipated proclamation amending the tariff schedule to implement the five-year update to the World Customs Organization’s Harmonized System tariff nomenclature. The widespread changes to the U.S. Harmonized Tariff Schedule will take effect 30 days after the proclamation is published in the Federal Register.
The Commerce Department published its fall 2021 regulatory agenda for the Bureau of Industry and Security, including a new mention of an export control rule for crime-control items and a rule that would reorganize provisions of the foreign direct product rule in federal regulations.
The White House is reviewing a draft proclamation about the five-year Harmonized Tariff Schedule update to implement changes to the World Customs Organization’s Harmonized System, the National Customs Brokers & Forwarders Association of America said in a Dec. 20 email to members. "For the WCO HS2022 to be effective, a proclamation from the White House must be published in the Federal Register," the trade group said. "These new tariff changes will then go into effect 30 days following publication. We have learned that a draft proclamation has been provided to the White House for review." CBP recently said the changes wouldn't take effect Jan. 1 and that it planned to continue to use the current HTS until more guidance is given (see 2112170068).
CBP “understands” that the five-year Harmonized Tariff Schedule update to implement changes to the World Customs Organization’s Harmonized System will not take effect Jan. 1, 2022, it said in a CSMS message. “CBP is awaiting formal direction for this update, which will be implemented by Presidential Proclamation and published in the Federal Register. In the interim, CBP will continue to use the current harmonized tariff schedule and encourages the trade community to do the same until further guidance is provided.”
The World Customs Organization recently announced that the final 2022 edition of the Harmonized System tariff nomenclature is now available on its website. The new edition, which replaces the 2017 version, will take effect Jan. 1, though WCO HS Convention members must implement the changes in their own tariff schedules.
The European Union imposed a definitive antidumping duty on imports of birch plywood from Russia, the European Commission said Nov. 9. The commission kicked off the investigation in October 2020 following a complaint from the Woodstock Consortium, which led to provisional measures taking effect in June 2021. The Nov. 9 update locks in those provisional measures. The duties cover "imports of plywood consisting solely of sheets of wood, each ply not exceeding 6 mm thickness, with outer plies of wood specified under subheading 4412 33, with at least one outer ply of birch wood, whether or not coated," from Russia.
The Bureau of Industry and Security on Oct. 28 updated its guidance on the Foreign-Produced Direct Product Rule to further clarify situations when goods are subject to the FDP rule and require a license. The guidance, which includes a set of frequently asked questions (see 2012210044), now includes new FAQ No. 4 under the "supply chain" subheading, which starts on page four and continues onto page five, a BIS spokesperson said.
The World Trade Organization’s moratorium on customs duties on data transfers (see 1912100047) is being threatened by India, South Africa and Indonesia, which want to impose the duties to “recoup perceived lost revenue,” the Computer and Communications Industry Association said Oct. 26. CCIA said the moratorium has been “key to the development of global digital trade” and urged the Office of the U.S. Trade Representative to push for a permanent extension at the WTO.
The U.S. Department of Agriculture is preparing a proposal to the World Customs Organization to create specific harmonized system subheadings for fresh, frozen and dried blueberries, the USDA Foreign Agricultural Service said in an October report. The agency said it is pursuing this proposal because blueberries are grouped in HS-6 codes with other fruits of the genus Vaccinium, which makes it “challenging” to track blueberry trade. The agency hopes the proposal will “provide clarity on trade (and thus production) and achieve a more precise understanding of how large the market is and where trade (and thus production) is happening.” If the proposal is approved, USDA said changes likely won’t be implemented for “several years.”