U.S. Importers Must Implement HTS Changes Next Month

January 2007

On February 3, 2007, U.S. importers of record must implement changes in their import practices to comply with changes to the 2007 Harmonized Tariff Schedule of the United States (HTSUS) made by the World Customs Organization (WCO).  There are over 300 amendments, affecting 85% of the HTSUS Chapters, including Chapters 84 (Machinery & Mechanical Appliances), 85 (Electrical Machinery & Equipment), 87 (Vehicles & Parts), and 90 (Optical, Photographic, Measuring, Medical Instruments).    

The new tariff classifications go into effect on February 3.  U.S. Customs and Border Protection (CBP), however, is granting importers a 17-day grace period before enforcing the new classifications.  The grace period will allow importers the opportunity to refile entries due to classification errors resulting from the tariff changes.  This will allow importers a “last chance” to avoid potential negligence penalties under 19 CFR 1592.  Enforcement of the new tariff classifications will begin on February 21.  A draft of the full 10-digit version of the HTS is available at the U.S. International Trade Commission (ITC) website at www.usitc.gov/tata/hts/bychapter/index.htm.

In addition, instead of using a Schedule B number on a Shipper’s Export Declaration (SED) or under the Automated Export System (AES), U.S. exporters can use most of the new tariff classifications.  To determine if a Schedule B number must still be used, exporters must check the Notice to Exporters found at http://hotdocs.usitc.gov/docs/tata/hts/bychapter/0700n2x.pdf.