Canopies for child safety seats are properly classified under Harmonized Tariff Schedule subheading 9401.99.90 as "other" seat parts, CBP headquarters said in a recently released ruling modification, despite a comment on the underlying proposal that said the court needed to follow U.S. Court of Appeals for the Federal Circuit precedent and classify the canopies as parts of seats for vehicle seats.
Harmonized Tariff Schedule
The Harmonized Tariff Schedule (HTS) is a reference manual that provides duty rates for almost every item that exists. It is a system of classifying and taxing all goods imported into the United States. The HTS is based on the international Harmonized System, which is a global standard for naming and describing trade products, and consists of a hierarchical structure that assigns a specific code and rate to each type of merchandise for duty, quota, and statistical purposes. The HTS was made effective on January 1, 1989, replacing the former Tariff Schedules of the United States. It is maintained by the U.S. International Trade Commission, but the Customs and Border Protection of the Department of Homeland Security is responsible for interpreting and enforcing the HTS.
The following lawsuits were filed at the Court of International Trade during the week of April 3-9.
The Court of International Trade on April 11 dismissed without prejudice a suit from Environment One Corp. seeking to impose a Section 301 exclusion on 31 entries, for failing to state a claim on which relief can be granted. While Judge Mark Barnett ruled against the government's motion to dismiss the case pertaining to 23 of the entries for lack of jurisdiction, the judge ultimately granted the U.S. motion to dismiss the case since the plaintiff failed to include key information about the merchandise at issue in the case's amended complaint. Barnett gave Environment One 10 days to file a second amended complaint lest the case be dismissed with prejudice.
The following lawsuits were filed at the Court of International Trade during the weeks of March 20-26 and March 27 - April 2:
Electronic goods with Chinese components such as notebooks, laptops and modems reimported to the U.S after undergoing repairs in Mexico are still subject to Section 301 tariffs on the repairs, even though the repairs are duty free under USMCA, CBP said in a February ruling.
The Court of International Trade on March 29 dismissed a lawsuit from cell phone case maker Otter Products seeking interest on customs duty overpayments, finding it lacked jurisdiction to hear the case. Judge Claire Kelly held that the Administrative Procedure Act waiver of sovereign immunity only applies to interest on deposits linked with liquidated entries. As a result, there is no specific waiver of immunity related to Otter's claim for interest for its overpayments on tendered prior disclosures "under the no-interest rule," Kelly said.
CBP created Harmonized System Update (HSU) 2305 on March 27, containing 24 ABI records and 5 Harmonized Tariff Schedule records. This update includes increased duties on certain articles from the Russian Federation and changes to HTS flagging, CBP said in a March 28 CSMS message.
CBP’s interpretation of the drawback statute and programming of its ACE Drawback Module led to an "absurd" rejection of substitution unused merchandise drawback eligibility for an importer of civil aviation equipment that disregards the basic structure of the tariff schedule, Spirit Aerosystems said in a March 24 motion for summary judgment at the Court of International Trade (Spirit Aerosystems v. U.S., CIT # 20-00094).
The Animal and Plant Health Inspection Service will begin requiring Lacey Act import declarations for a new set of plant materials and products beginning as early as spring 2024, it said in an emailed bulletin March 27. The agency is reviewing the tariff schedule to “determine the complete list of materials and products that will be included in Phase VII” of Lacey Act enforcement, and will publish a “complete list” in the fall of “materials and products” that will be newly subject to the import declaration requirement, it said. APHIS “will require declarations for those product codes 6 months” after it publishes the list, it said.
The Internal Revenue Service on March 27 released new proposed regulations to “provide guidance” on superfund excise taxes on imported chemicals and substances that took effect July 1 of last year. Comments are due May 30.