Official 2012 HTS with WCO Changes to be Posted Early & Can be "Used"
The International Trade Commission states that it will post the "official" online 2012 U.S. Harmonized Tariff Schedule, which contains hundreds of World Customs Organization-recommended as well as other tariff changes, 2-3 days early, which ITC sources state could occur on January 30. Sources also state that the print copy has gone to the Government Printing Office. While not in effect until February 3, 2012, sources note that the official HTS will be able to be used early without having ABI "kick out" the entry, as the entry summary is not due until 10 days later, which can be on a date that falls after February 3.
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(CBP has already issued Harmonized System Update 1201 for the 2012 HTS. The update contains 9,350 ABI records and 2,155 harmonized tariff records. See ITT's Online Archives 12012501 for summary.)
Most of the 2012 HTS Changes Are due to WCO Recommendations
Most of the tariff changes for 2012 are needed to conform the HTS to the WCO's International Convention on the Harmonized Commodity Description and Coding System (Harmonized System, or HS) and HS Committee decisions. In addition, certain changes may be due to U.S. Customs and Border Protection (CBP) requests for additional tariff numbers to continue existing duty treatment for particular goods once the WCO changes are implemented.
HTS Changes Aim to be “Substantially Rate Neutral”
According to the ITC, as required by law, the WCO tariff changes are required to be “substantially rate neutral.” As a result, any modification that would change a rate of duty must be consequent to, or necessitated by, the WCO- recommended nomenclature changes.
Many Products Affected, Including Food and Ag
54 chapters affected. WCO officials have stated that there were a total of 225 amendments (affecting 5,205 tariff numbers) for the 2012 international HS. For the U.S. HTS, the following chapters are affected by the 2012 WCO-recommended changes:
1, 2, 3, 4, 6, 7, 8, 9,10, 11, 27, 28, 29, 30, 37, 38, 41, 42, 44, 47, 48, 56, 58, 61, 62, 63, 64, 65, 68, 71, 73, 74, 76, 82, 84, 85, 87, 90, 91, 92, 93, 94, 95, 96, 98, and 99
Food and ag goods. A large number of changes were made to facilitate the use of the HS for the compilation of food security data and agriculture (including forestry and fisheries) statistics. The largest volume of such amendments arose from a single request by the Food and Agriculture Organization (FAO) for separate identification of food products in Chapters 1-21.
Diapers, biodiesel, batteries, etc. The 2012 HS also creates a new heading for hygiene absorbent products, such as infant diapers, adult incontinence products, feminine sanitary products, etc. Currently, these products are classifiable in the international HS under headings 48.18, 56.01, 61.11 or 62.09 according to their constituent materials. However, as of January 1, 2012, these hygiene absorbent products, of any material, will fall under HS heading 96.19.
In addition, the ITC's June 2010 final report on the proposed 2012 HTS changes to implement the WCO recommendations, stated that amendments of particular economic and technological importance include those providing separate identification in the international HS for biodiesel fuels, nickel-metal hydride batteries (used in hybrid motor vehicles), and lithium-ion batteries (used to power consumer electronics products).
(See ITT's Online Archives 12012459 for recent reminder stating that the WCO-recommended tariff changes would take effect on or about February 3, 2012. See ITT's Online Archives 12010412 for summary on Proclamation 8771, which implements the WCO-recommended tariff changes.
See ITT's Online Archives 11122708 and 11123015 for initial list and corrections to 484(f) statistical changes for the 2012 HTS. See ITT's Online Archives 11122318 for summary of the International Trade Commission's online "preliminary" version of the 2012 HTS that took effect on January 1 (which does not reflect the WCO changes).
See ITT's Online Archives 11122017 for summary detailing the WCO-recommended tariff changes (affecting products in 54 HTS chapters, including many food and agricultural items), which states that these changes are required to be "substantially rate neutral.")