ITC Posts 2019 Tariff Schedule After Lengthy Shutdown Delay

The new 2019 edition had been delayed due to the recently ended partial federal government shutdown. Though the new year’s edition is usually issued at the beginning of January, the ITC did not post the 2019 tariff schedule until the beginning of February. Many of the changes had already been put into effect by CBP’s Dec. 19 ABI update (see 1901110016).

(Note: This report only includes changes made since the last revision to the online HTS (HTS 2018 Rev. 14) went into effect on Nov. 1, 2018 (see 1811010018). For a full list of changes since the last paper edition of the HTS was published on Jan. 1, 2018, see the change record.)

Changes to Units of Quantity in Tariff Schedule

The 2019 tariff schedule includes changes to units of quantity for more than 650 10-digit subheadings in the tariff schedule. “A significant number of dutiable subheadings and/or their statistical reporting numbers previously setting forth a unit of quantity of 'X' have been modified effective on January 1, 2019, to specify a particular unit,” the ITC said in its change record. The ITC did not post a list with its update, instead directing users to “check the provision applicable to their goods.” The updates have already been incorporated in the Automated Broker Interface (ABI), however, and the National Customs Brokers & Forwarders Association of America put out a spreadsheet listing the changes.

Abbreviation for grams modified. One widespread change is a switch from “gm” to “g” for the unit of measure abbreviation for grams throughout the tariff schedule.

Petroleum gas. Changes to statistical reporting requirements for petroleum gas require changes to notes to Chapter 27. Statistical Note 1, which had previously required that, “for the purposes of statistical reporting number 2711.11.0000, the volume of liquid natural gas shall be reported on a gaseous equivalent volume basis,” is removed from the tariff schedule, though the unit of measure for that subheading remains cubic meters. Units of quantity for liquefied petroleum gas of subheadings 2711.12 and 2711.13 are now cubic meters (instead of barrels). Units of quantity for other liquefied petroleum gases of subheading 2711.19 and other petroleum gases in a gaseous state of subheading 2711.29 are now kilograms (also instead of barrels).

Mauritania Now Ineligible for AGOA Benefits

Mauritania is removed from eligibility for AGOA benefits. General Note 16(a) is amended to remove Mauritania from the AGOA country list. The country’s removal from AGOA was announced in November after a review found forced labor issues (see 1811050019). Presidential Proclamation 9834, issued Dec. 21, implemented the change (see 1812270038).

New Statistical Breakouts for Infant Footwear, Organic Flour

The 2019 tariff schedule includes a series of changes to 10-digit HTS subheadings agreed upon by the 484(f) Committee, which includes representatives from CBP, the International Trade Commission and the Census Bureau. These changes took effect Jan. 1, and were included in CBP’s Dec. 19 ABI update, as follows:

Organic flour. New statistical breakout 1101.00.0050 is added for certified organic “other” wheat or meslin flour (i.e., not made from hard spring wheat, durum wheat or white winter wheat). Non-organic products that meet that description are now classifiable in statistical breakout 1101.00.0060. Previously both had been classified together under 1101.00.0090, which is eliminated.

Odoriferous or flavoring aldehyde compounds. New statistical breakout 2912.29.6010 is added for “other” aldehydes that are odoriferous or flavoring compounds. The residual category for “other” aldehydes, that are not odoriferous or flavoring compounds is now 2912.29.6090.

Organo-sulfur compounds. Previously existing statistical breakout 2930.90.9120 for isooctyl thioglycolate is eliminated from the tariff schedule. New breakout 2930.90.9112 is added for 2-ethylhexyl mercaptoacetate. The residual subheading for “other” organo-sulfur compounds is renumbered 2930.90.91.50.

Fungicides. Subheading 3808.92.5000 for “other” fungicides (i.e., not containing aromatic fungicides, any fungicide which is a thioamide, thiocarbamate, dithiocarbamate, thiuram or isothiocyanate, or any inorganic substance) is subdivided into new statistical breakouts 3808.92.5040 for “formulated fungicides containing any 3-iodoprop-2-yn-1-yl butylcarbamate (IPBC),” and 3808.92.5080 for “other” such fungicides.

Polyethylene terephthalate resin. Tariff provisions for PET resin are subdivided to provide more detail. Subheading 3907.61.0000 for PET resin with a viscosity of 78 ml/g or higher is split into subheadings 3907.61.0010 for PET resin with a viscosity of 78 to 88 ml/g, and 3907.61.0050 for PET resins with a viscosity over 88 ml/g. Similarly, subheading 3907.69.0000 for PET resin with a viscosity below 78 ml/g is split into subheadings 3907.69.0010 for PET resin with a viscosity at or above 70 ml/g and below 78 ml/g, and 3907.69.0050 for PET resins with a viscosity under 70 ml/g.

Paper. Subheading 4802.56.7040 for certain uncoated paper is split into statistical suffixes 4802.56.7050 for writing and cover paper, and 4802.56.7090 for “other” such paper. Subheading 4802.57.1000 for uncoated writing or cover paper weighing 40-150 grams per square meter is subdivided into new statistical breakouts 4802.57.1020 for writing and cover paper with one side equal to 559 mm and the other side equal to 280 mm; 4802.57.1040 for writing and cover paper with one side equal to 965 mm and the other side equal to 635 mm; and 4802.57.1090 for “other” such paper. Subheading 4802.57.4000 for “other” paper weighing 40-150 grams per square meter is identically subdivided into new statistical suffixes 4802.57.4020, 4802.57.4040 and 4802.57.4090.

Infant footwear. Provisions for footwear for infants are added to Chapter 64 of the tariff schedule. New Statistical Note 2 is added to Chapter 64, defining infant footwear as follows: “For the purposes of statistical reporting numbers 6402.91.4063, 6402.99.3173, 6405.20.3070, 6405.20.9070 and 6405.90.9030, the term 'footwear for infants’ covers American infant sizes up to and including size 3.”

New subheading 6402.91.4063 is added for infant footwear covering the ankle with outer soles and uppers of rubber or plastics. The “other” category, 6402.91.4061, is renumbered 6402.91.4067. Previous subheading 6402.99.3171 for certain rubber or plastic footwear is subdivided to add new statistical breakout 6402.99.3173 for infant footwear, and is renumbered 6402.99.3177. New statistical breakout 6405.20.3070 is added for footwear with uppers of vegetable fibers, with subheading 6405.20.3080 now covering “other” footwear with uppers of vegetable fibers (i.e., not for men, women or infant). New statistical breakout 6405.20.9070 is added for certain house slippers for infants with uppers of textiles, and the previous category for “other” house slippers (i.e., not for men, women or infants) is renumbered 6405.20.9080. Finally, new statistical breakout 6405.90.9030 is added to the catch-all residual category for Chapter 64 to cover infant footwear, and the “other” provision within that subheading is renumbered 6405.90.9060.

Aluminum foil. Subheading 7607.11.60 for unbacked aluminum foil, rolled but not further worked, of a thickness above 0.01 mm and not exceeding 0.15 mm, is subdivided. New statistical breakout 7607.11.6010 is added for boxed aluminum foil not weighing more than 11.3 kg. Subheading 7607.11.6090 covers other such aluminum foil.

Hydraulic fluid power pump parts. Subheading 8413.91.90 for parts of hydraulic fluid power parts is subdivided to include new statistical breakout 8413.91.9055 for fluid end blocks used in hydraulic fluid power pumps. Other parts of hydraulic fluid power pumps are now classifiable in new statistical breakout 8413.90.9060. Subheading 8413.91.9080 for other pump parts is renumbered 8413.90.9095.

Renegotiated KORUS Duty Rates

Several changes to staged duty reductions for motor vehicles are made pursuant to recently agreed-upon changes to the U.S.-South Korea Free Trade Agreement (see 1809040039). Specifically, duty rates for South Korean light trucks of subheadings 8704.21.00, 8704.22.50, 8704.23.00, 8704.31.00, 8704.32.00, and 8704.90.00 will remain at 25 percent until 2041, rather than falling to zero by 2021, as originally agreed (see 1809040039).

Staged duty reductions are also implemented for certain goods of Chapter 44 to reflect changes earlier in the year to tariff subheadings for hardwood plywood.

Israel Agriculture Agreement Renewed Again

Several notes to subchapter VIII of Chapter 99 are amended to reflect a one-year extension of the U.S.-Israel agreement on trade in agricultural goods by adding maximum quantities for certain goods in calendar year 2019.

Nepal Trade Preferences SPI Added to General Notes

Special Program Indicator “NP” for the “Nepal Preference Program” is added to the list of SPIs at General Note 3(c). The SPI for the benefits, which were granted by the Trade Facilitation and Trade Enforcement Act of 2015, has already been added to subheadings throughout the tariff schedule, but had not yet been added to the SPI list.

Corrections to Section 301, MTB Coverage

The list of subheadings subject to the third set of Section 301 tariffs in Chapter 99 subchapter III Note 20(f) is amended to delete subheading 2009.89.60 from the list, and add subheadings 2009.89.65 and 2009.89.70. Similarly, subheadings 9902.01.15, 9902.01.16 and 9902.01.17 for certain goods that are now duty free under the most recent Miscellaneous Tariff Bill are each amended by deleting "subheading 2009.89.60" and replacing it with "subheading 2009.89.70.”

Other Staged Duty Reductions, Corrections and Clarifications

Subheadings are added and removed from several chapter notes and special tariff provisions to provide for previously granted duty preferences under a trade deal with Panama and the correct administration of the tobacco tariff-rate quota. Changes are made to the rules of origin for the Morocco Free Trade Agreement related to women’s clothing of Chapter 62.