ITC Posts 2014 Harmonized Tariff Schedule; Most Changes Effective Jan. 1

(Note: This report only includes changes made since the last revision to the online HTS (HTS 2013 Rev. 1) went into effect on July 1, 2013 (see 13070202). For a full list of changes since the last paper edition of the HTS was published on Jan. 1, 2013, see the change record (here).)

List of MPF-free FTAs added. The 2014 HTS reorganizes general statistical note 3 to clarify which free trade agreements exempt goods from the MPF. It adds subdivisions (i)-(iv) to general statistical note 3(c) to include a full list of FTAs for which no MPF is due.

Reporting of metal ores, concentrates, slag, ash, and residues. New statistical note 3 to chapter 26 is added to the HTS to specify that for shipments containing ores, concentrates, slag, ash and residues of metals including copper, nickel, lead, zinc, and precious metals, the weight and value of the metal content must be reported. For shipments containing multiple metals, each applicable 10-digit subheading must be listed with the weight and value of each metal. This change was effective Jan. 1.

New statistical suffixes. The 2014 version of the HTS adds new statistical suffixes to subheadings for xanthan gum, synthetic filament tow, alloy steel bars and rods, unwrought titanium, and medical and laboratory sterilizers. All of added statistical suffixes took effect Jan. 1.

Xanthan gum. Subheading 3913.90.20 for “Natural polymers …: Other: Polysaccharides and their derivatives” is broken out into statistical suffixes ’15 and ‘90 for “xanthan gum” and “other,” respectively.

Synthetic filament tow. Subheading 5501.30.00 for “Synthetic filament tow: acrylic or modacrylic” is broken out into statistical suffixes ’10 for filament tow containing 92% or more of acrylonitrile units with a filament diameter of 1.59 decitex or less, and ’90 for “other.”

Hot-rolled alloy steel bars and rods. New statistical suffixes for bars and rods that have a circular cross section are added to subheading 7227.90.60 for “Bars and rods, hot-rolled, in irregularly wound coils, of other alloy steel: Other: Other:.” The statistical suffixes are further broken out into ’30, ’35, and ’40 based on the diameter of the bar or rod. The subheadings “other” category is also renumbered to statistical suffix ’90.

Unwrought titanium. The statistical suffix number for “Titanium articles thereof, including waste and scrap: Unwrought titanium; powders: Other: Other:” under subheading 8108.20.00 is changed from ’91 to ’95.

Unwrought titanium II. Also, the HTS provision for “Titanium and articles thereof, including waste and scrap: Other: Other: Billets” under tariff number 8108.90.8010 is deleted. In its 2009 ruling H027436, CBP found aluminum billets to be classifiable under subheading 8108.20 for “unwrought titanium; powders” instead of subheading 8108.90 for other “titanium and articles thereof.”

Sterilizers. Subheading 8419.20.00 for “Machinery, plant or laboratory equipment … for the treatment of materials by a process involving a change in temperature …: Medical, surgical or laboratory sterilizers” is subdivided into statistical suffixes ’10 for “Medical or surgical sterilizers” and ’20 for “Laboratory sterilizers.”

Other changes. The 2014 HTS also includes other minor changes to correct errors, reflect changes elsewhere in the HTS, and renumber a subheading, as follows:

Machinery parts. Tariff provisions under heading 8431 for parts of machinery of headings 8425 to 8430 are rewritten to reflect changes elsewhere in the HTS. The changes affect subheadings 8431.39.0070 and 8431.9045, and took effect Jan. 1, 2014.

Renumbered ADP subheading. Subheading 8471.41.00 for “Automatic data processing machines and units thereof …: Other automatic data processing machines” is renumbered to 8471.41.01, effective Feb. 3, 2007.

Duty-free South Korean clasps. Subheading 7113.19.30 for “Articles of jewelry and parts thereof, of precious metal or of metal clad with precious metal: Of other precious metal …: Other: Clasps and parts thereof” is modified to correct a typo by adding the SPI “KR” to the special rate of duty column, effective March 15, 2012.

Changes from Presidential Proclamation 9072

The 2014 update to the HTS also implements changes detailed in Presidential Proclamation 9072 (see 13123024). The most extensive of these changes are a rewrite of the rules of origin for the U.S.-Korea Free Trade Agreement. Other HTS changes made in the proclamation include the return of AGOA beneficiary status for Mali, a renewal of the Israel agriculture agreement, the addition of Curacao to CBERA and the CBTPA, the expiration of the Andean Trade Preferences Act, and a correction to the tariff treatment of radial tires from Chile.

AGOA status for Mali. Proclamation 9072 returned Mali to sub-Saharan African beneficiary country status under the African Growth and Opportunity Act. The U.S. had revoked AGOA beneficiary status for Mali in December 2012 because it “was not making continual progress in meeting” AGOA requirements (see 12122725). Proclamation 9072 returns Mali to beneficiary status “based on actions the Government of Mali has taken over the past year.” The proclamation adds “Republic of Mali (Mali)” to the alphabetical list of AGOA beneficiary sub-Saharan countries under general note 16(a) to the HTS, effective Jan. 1.

Israel agriculture agreement. The proclamation extended coverage of a 2004 agreement on trade in agricultural products between the U.S. and Israel. The deal initially expired in 2008, but was extended for one year increments each year since. Proclamation 9072 again extends the expiration date of subchapter VIII of chapter 99 of the HTS until Dec. 31, 2014. The changes to subchapter VIII of chapter 99, reflected in Annex I to Proclamation 9072, take effect Jan. 1.

Curacao added to CBERA and CBTPA. The proclamation granted beneficiary status to Curaçao under the Caribbean Basin Economic Recovery Act and the Caribbean Basin Trade Partnership Act. The island country is a successor to the Netherlands Antilles, which is already listed as a CBERA and CBTPA beneficiary, it said. The proclamation adds Curaçao to the list of CBERA beneficiaries in general note 7(a) to the HTS, effective Jan. 1. To implement Curaçao’s designation as a CBTPA beneficiary, the U.S. Trade Representative will evaluate whether the country has satisfied CBTPA requirements and, if so, publish a Federal Register notice modifying general note 17 of the HTS to add Curaçao to the list of CBTPA beneficiaries.

U.S.-Korea Rules of Origin. Proclamation 9072 made widespread changes to the rules of origin under the U.S.-Korea Free Trade Agreement. The modifications are necessary to bring the rules of origin into conformance with 2011 changes to the HTS that were made to implement World Customs Organization recommendations, it said (see 12013023). The U.S.-Korea FTA had been negotiated by the time those changes came into effect, so the rules of origin referenced the older version of the tariff schedule, said the proclamation. As such, the proclamation made extensive changes to general note 33 of the HTS.

ATPA expiration. The Andean Trade Preferences Act expired on July 31, 2013, so Proclamation 9072 eliminated the program from the HTS. The changes include the removal of general note 11, the deletion of subchapter XXI of chapter 98, and the elimination of the symbols J, J+, and J* from chapters 1-99 of the HTS. The expiration of ATPA took effect July 31.

Chile duty rate errors. Proclamation 9072 made corrections to errors in an earlier proclamation that resulted in an error in duty rates under the U.S.-Chile Free Trade Agreement for radial tires. Effective Jan. 1, the proclamation added Chile to the list of countries that are duty “Free” under subheading 4011.10.10 and 4011.20.10 for radial tires for cars and trucks, respectively. It also deleted tariff rate quota provisions under subchapter XI of chapter 99 of the HTS.