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ITC Clarifies its Posted Information on the Draft Feb 3, 2007 HTS, Etc.

According to updated information on the draft February 3, 2007 Harmonized Tariff Schedule (HTS) posted by the International Trade Commission, and ITC and U.S. Customs and Border Protection (CBP) sources, the following information has been clarified:

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HTS Chapter 99 changes in recent Trade Act effective January 4. The Harmonized Tariff Schedule (HTS) Chapter 99 and other HTS provisions in P.L. 109-432 (The Tax Relief and Health Care Act of 2006) that were legislated as effective on January 4, 2007 (15 days after enactment), are effective on January 4, 2007.

(These changes are not effective on February 3, 2007. However, these changes will be incorporated into the February 3, 2007 version of the 2007 HTS. These changes will not be incorporated into the preliminary January 1, 2007 version of the HTS.)

CBP expects its systems to now be updated for Trade Act Chapter 99 changes. CBP sources state that CBP expects its systems to be updated as of January 9, 2007 to include the HTS Chapter 99 and other HTS changes in P.L. 109-432 that took effect on January 4, 2007, and will issue a notice when this update is completed.

WCO tariff changes will take effect on or about February 3, 2007. The numerous World Customs Organization (WCO) tariff changes contained in Proclamation 8097 will take effect on or about February 3, 2007 as previously stated by the ITC. These changes will only be contained in the February 3, 2007 version of the HTS. They will not be contained in the preliminary January 1, 2007 version.

Trade Act HTS Chapter 99 changes still need to be updated for WCO changes. The January 4, 2007 HTS Chapter 99 and other HTS changes arising from P.L. 109-432 still need to be revised, as needed, for the WCO changes which are contained in Proclamation 8097.

Sources state that this cannot be done administratively, but needs another proclamation. Sources also state that a large number of the underlying HTS Chapter 1 - 97 tariff numbers are affected by the WCO changes which take effect on February 3, 2007.

Updated Pharmaceutical Index now in both preliminary and draft 2007 HTS and in effect. The draft February 3, 2007 version of the 2007 HTS and the current version of the 2007 HTS (Preliminary - January 1, 2007) have both been updated to incorporate the amendments to the HTS Pharmaceutical Appendix implemented by Proclamation 8095. These amendments are effective retroactively on January 1, 2007.

(See ITT's Online Archives or 01/09/07 news, 07010910 for BP summary of Proclamation 8095.)

List of all laws, etc. reflected in draft February 3, 2007 HTS. The ITC's updated information on its Web site now provides a link to all of the laws, proclamations, and other legal instruments reflected in the draft February 3, 2007 version of the HTS.

(See ITT's Online Archives or 01/05/07 news, 07010505 for BP's prior update on the Feb. 3rd 2007 HTS.)

ITC's updated information, updated Pharmaceutical Index, draft February 3, 2007 HTS, etc. available at http://www.usitc.gov/tata/hts/

BP Note

The ITC's updated information, although it no longer contains certain erroneous language regarding import entries, is still somewhat confusing in that it states that the Preliminary - January 1, 2007 HTS is still in effect until February 3, 2007.

ITC sources indicate, however, that the Preliminary - January 1, 2007 HTS is not "the law of the land" for any legal instruments that take effect after January 1, 2007, like aspects of P.L. 109-432, that implemented a number of HTS Chapter 99 changes on January 4, 2007.