Feb 3, 2012 HTS with WCO Changes Now in Effect
The February 3, 2012 U.S. Harmonized Tariff Schedule, which contains hundreds of World Customs Organization-recommended as well as other tariff changes, is now in effect. The print copy of this version is also available from the Government Printing Office (GPO).
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(CBP also 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 February 3 tariff changes 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 International Trade Commission (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).