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Significant HTS Changes Are Coming January 1, 2022

By November 29, 2021 No Comments

Significant HTS Changes Are Coming January 1, 2022

Significant changes in the Harmonized Tariff Schedule of the United States (HTSUS) are coming on January 1, 2022, a combination of routine U.S. updates along with broader modifications that have been adopted by the World Customs Organization (WCO).  The impacted WCO classifications are at the six-digit level and will be adopted amongst all 183 countries that comprise the organization.  The resulting effects are far reaching across a wide cross section of the tariff including machinery and parts, furniture, and automotive parts.  Among them are new headings for electronic waste (related to the Basel Convention), smartphones, drones, and tobacco along with nicotine vaping products. Metal forming machinery (under 8462) was a particular focus to keep up with technological changes, as were glass fibers (under 7019). Flat panel displays (under 8524) will be classified outright thus removing the need to identify by end use, and a subheading covering some flat panel displays was deleted from 8543.

Another example of these changes can be found in the definition of “textile fabrics laminated with plastics” (covered by heading 5903), which has been revised to include fabrics bonded to plastic sheets or film whether or not the plastic is visible to the naked eye in the cross section. This could favorably impact garments currently classified under HTSUS headings 6113 and 6210 which are constructed of fabric laminated with plastic.

With worldwide security in mind new provisions have been created for dual use goods and there are new subheadings added for chemicals controlled under the Chemical Weapons Convention. Certain hazardous chemicals covered under the Rotterdam Convention and persistent organic pollutants controlled under the Stockholm Convention also have new subheadings.

The result of these sweeping changes is that importers may find that some of the HTS codes they have been using are no longer valid. Correlating tables published by the WCO are available online at World Customs Organization (wcoomd.org). You can also can find a list of USITC recommended tariff modifications which contains a link to the their more in depth proposal at Recommended Modifications in the Harmonized Tariff Schedule, 2021 (usitc.gov).

Should you have any questions about these changes, your CVI customs compliance professional is ready to assist.

Best Regards,

Sam McClure, LCB

Director of Compliance & Customs Services

 

Need a refresher on tariff rounds and exclusions?

CVI Exclusion Guide 2020

CVI has a free, complete guide to EVERYTHING you need to know for tariff rounds and exclusions, including:

  • HTS Code
  • Publish Dates
  • Exclusion provision number per set list and round
  • Effective & Extended Expiration Dates

The CVI Exclusion Guide 2020 provides you with a link to original USTR exclusion announcements with a breakdown of each excluded product.

Please let us know if you have any questions. We will be regularly updating this document via our website. Check it out here!

 

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Meet one of CVI’s Customs Brokerage & Compliance experts, Sam McClure:

Sam serves as Director, Compliance and Customs Services for CVI. He serves as CVI’s corporate compliance officer and is responsible for overseeing all aspects of our Customs related services, including growth.

Sam started his career in 1977 with Waters Shipping Company in Charlotte, NC. He began as a document runner, soon becoming a leader in operations and customer service for the branch. Sam, along with Linda Masten, founded Central Carolina Shipping Inc. in 1983 as an independent Customs Brokerage firm where he served as Vice President for 26 years. Sam and Linda grew Central Carolina into a successful and highly respected member of the Carolinas trade community. When Charlotte opened their local chapter of the IFFCBA Sam was part of the organizing group and he headed the Customs committee for several years. Sam obtained his Customs Brokers License in 1984 and remained with Central Carolina until the company was acquired by CVI in 2009.

At CVI, Sam has held several positions in both the operations and sales departments. As an expert in U.S. Customs regulations, Sam is often called upon on to provide guidance to importers on Customs compliance issues. He makes regular presentations on matters related to importation and broader regulatory compliance.

– Sam McClure, LCB, Director of Compliance & Customs Services, CVI
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