WCO Changes at 10 Digit Level and Draft WCO-Amended 2007 HTS Posted (To Take Effect Approximately Feb 3rd)
The International Trade Commission (ITC) has posted to its Web site the Harmonized Tariff Schedule changes - at the full 10-digit level -as well as any new or amended notes or headings - that are being implemented to conform U.S. law to international Harmonized System (HS) nomenclature changes recommended for adoption by the World Customs Organization (WCO), and to certain Harmonized System Committee (HSC) decisions necessary to ensure uniform application of the nomenclature, etc.
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These changes are contained in ITC Publication 3898, which is entitled "Modifications to the Harmonized Tariff Schedule of the United States under Section 1206 of the Omnibus Trade and Competitiveness Act of 1988", certain aspects of which are incorporated by reference into Presidential Proclamation 8097, entitled "Proclamation to Modify the Harmonized Tariff Schedule of the United States, to Adjust the Rules of Origin for the U.S.-Australia Free Trade Agreement, and for Other Purposes."
Draft 2007 HTS Containing WCO Changes Also Posted
The ITC has also posted a draft version of the 2007 HTS as amended by Proclamation 8097, etc., which the ITC states will be effective on or about February 3, 2007. (See future issue of ITT for full details.)
This draft version is available at http://www.usitc.gov/tata/hts/
WCO Tariff Changes Will Take Effect on Approximately February 3, 2007
Proclamation 8097 is published in the January 4, 2007 Federal Register. As the proclamation states that the WCO tariff changes will take effect 30 days after Federal Register publication, the changes will take effect on approximately February 3, 2007.
"Blanket" Authorization for Immediate Delivery Procedures Will Allow Any WCO Changes 10 Days "Early"
U.S. Customs and Border Protection (CBP) had earlier issued a notice stating that a blanket authorization will be offered for the period 10 days prior to the effective date of the WCO tariff changes, that will allow filers to take advantage of any lower duty rates, etc., contained therein. (Although the ITC has stated that its implementation of the WCO changes is intended to ensure substantial rate neutrality, some rate changes are expected). (See ITT's Online Archives or 12/15/06 news, 06120705 for recent BP summary of CBP's blanket authorization notice for year-end and WCO changes.)
CBP Also Expected to Make Available a 15-Day 'Grace Period' for Rejects, Etc.
Although the details are sketchy and no instructions have yet been issued, CBP sources have previously stated that the agency expects to provide a 15-day grace period after the implementation of the WCO HTS changes for the refiling of entries rejected due to classification errors resulting from WCO changes. Sources note that some type of evidence (that the reject was due to WCO changes) may need to be available in some manner.
(This 15-day grace period, plus the proclamation's 30-day delay in the effective date of the WCO changes, will provide the trade with their requested 45-day lead time. )
Proclamation Conforms the HTS Australia FTA Rules of Origin to the WCO Changes; Additional Proclamations Expected for NAFTA and Other FTAs
Proclamation 8097 conforms the HTS U.S. - Australia Free Trade Agreement Rules of Origin to the WCO changes. Government sources have stated that other proclamations will be issued to conform the HTS Rules of Origin for various other FTAs, such as NAFTA, to the WCO changes.
WCO Changes Will Affect 83 HTS Chapters and May Affect Duty Rates
The ITC has previously stated that the WCO tariff number and note modifications consist of several hundred amendments affecting 83 chapters and more than 240 headings throughout the nomenclature. Although the tariff changes are designed to ensure substantial rate neutrality, in certain instances the duty rate for a product may change.
(Broker Power issued a 35-part series of summaries of the WCO changes as reported by the ITC. However, these summaries do not reflect any corrections the ITC has made since the issuance of its report. In addition, the ITC's report was not at the 10-digit level. See ITT's Online Archives or 10/25/06 news, 06102530 for last BP summary, with links to the 34 prior ones.
(See ITT's Online Archives or 12/19/06 news, 06121905 for earlier BP summary on effective date, etc. of these WCO changes.)
Proclamation 8097 (FR Pub 01/04/07) available at http://a257.g.akamaitech.net/7/257/2422/01jan20071800/edocket.access.gpo.gov/2007/pdf/07-00004.pdf
ITC publication 3898 (211 pages containing three annexes, dated December 2006) available at http://hotdocs.usitc.gov/docs/tata/hts/pub3898.pdf
Draft 2007 HTS as amended by WCO changes, etc. available at http://www.usitc.gov/tata/hts/
BP Note
The other three trade proclamations signed on December 29, 2006, i.e., on Vietnam PNTR, on Pharmaceuticals and Chemical Intermediaries, and on AGOA and GSP countries, are also published in the January 4, 2007 Federal Register, at http://www.access.gpo.gov/su_docs/aces/fr-cont.html .