Widespread Changes in 2022 Tariff Schedule Look Set for Late January Effective Date
The presidential proclamation amending the Harmonized Tariff Schedule to implement a hefty five-year update will likely be published in the coming days, which would set an effective date in late January for the lengthy list of changes. The White House released the proclamation Dec. 23 (see 2112230012), though a publication date in the Federal Register had not yet been scheduled as of press time. The date of publication triggers a 30-day countdown before the changes take effect.
Sign up for a free preview to unlock the rest of this article
Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.
Most of the changes set by the proclamation implement the World Customs Organization’s 2022 Harmonized System tariff nomenclature (see 2001290033), which is updated every five years. The HS governs classification for most countries at the six-digit level, and each Harmonized System Convention member must then also set eight-digit and 10-digit changes to their own tariff schedules. Similarly widespread changes were adopted by the WCO and implemented in the HTS in 2017.
The International Trade Commission included its proposed changes in a report sent to the president in May and later provided to congressional committees as part of the statutory process for these five-year updates (see 2105140030). Actual changes to the HTS that will be detailed in as-yet unreleased annexes to the presidential proclamation will likely mirror those ITC proposals. The annexes will be included with the proclamation when it’s published in the Federal Register.
Particularly affected by the update are goods of chapters 44, 84 and 85, with some modifications to chapter notes also resulting in classification changes for textiles and apparel (see 2109160023). Flat panel display modules, 3D printers, drones, electric vehicles, e-cigarettes, medical diagnostic test kits, olive oil, electronic waste and cultural articles are among the products covered in the five-year update.
Given the widespread modifications to the tariff schedule, the proclamation also makes changes to provisions in the tariff schedule on Section 301 tariffs on China “to ensure the maintenance of such duty rates for goods under tariff categories that are being modified to reflect the amendments to the Convention.” The proclamation in the same vein amends tariff provisions on various free trade agreements to conform to the updated 2022 classification scheme.
The proclamation also removes Ethiopia, Guinea and Mali as African Growth and Opportunity Act beneficiaries, as announced in November (see 2111020035). The administration is removing Ethiopia for human rights violations in the Tigray conflict, and Mali and Guinea, after coups in both countries. Removal of AGOA benefits for these three countries takes effect Jan. 1, as do other previously announced changes at the 10-digit level unrelated to the WCO five-year update (see 2112200025).