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12/17/2021

CBP Advises 2022 HTS Update Will Not Occur On January 1

In the below CBP message issued late on Friday, December 17, CBP advised that the changes to the 2022 HTS will not begin on January 1. Please see the below.

CSMS #50430066 – 2022 Harmonized Schedule 5 Year Update

U.S. Customs and Border Protection (CBP) understands that the five-year World Customs Organization harmonized tariff schedule update will not take effect January 1, 2022. CBP is awaiting formal direction for this update, which will be implemented by Presidential Proclamation and published in the Federal Register. In the interim, CBP will continue to use the current harmonized tariff schedule and encourages the trade community to do the same until further guidance is provided.

V. Alexander will continue to monitor the implementation schedule and once a firm date is known will issue an update.

Please contact your V. Alexander account team with any questions and follow us on our website www.valexander.com for updates on this and other topics.

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12/15/2021

The World Customs Organization (WCO) reviews and makes updates to the global Harmonized Schedule (HS) every five years.

The last update was in 2017, and the 2022 update will bring some significant changes to the tariff.

In April 2021, following the World Customs Organization’s (WCO) recommendation of changes to the global Harmonized System (HS), the U.S. International Trade Commission (USITC) submitted to the President recommended modifications to the 2021 Harmonized Tariff Schedule of the United States (HTSUS).

Importers should review the changes to determine if they could affect their businesses.

Keep in mind that the WCO tariff (HS) provides tariff numbers only at the 6 digit level and each country that is a party to the HS can add additional digits to their respective tariff schedules, and of course, duty rates are set by each country and not the WCO. For example, the U.S. assigns duty rates at the 8 digit level to the HTSUS and uses classification at the 10 digit level to provide them with statistical reporting.

It is important to note that although a tariff number may change, it does not mean that the duty rate will necessarily change.

The 2022 update would impact 350 products and product groups that are classified in several chapters, such as electronic cigarettes, semiconductor devices, polyether, paper products, etc. The modifications would make changes to the HTSUS nomenclature, including modifications of article descriptions and heading and subheading numbers. Some recommended modifications would modify section notes, chapter notes, additional U.S. notes and the general notes to the HTSUS. Others would replace existing HTSUS headings and subheadings. The new tariff provisions, modified product descriptions, and revised legal notes are intended to account for advances in technology, environmental considerations, and health and safety considerations.

Regarding the timeline for implementation, the U.S. has not announced a firm implementation date, but it is anticipated that the changes will go into effect in early 2022, or 30 days after a Presidential Proclamation and publication in the Federal Register.

A list of the proposed changes to the Harmonized Tariff Schedule of the United States (HTSUS) can be found here, as well as a correlation table which correlates the 2017 WCO tariff to the WCO 2022 tariff.

V. Alexander will continue to monitor the implementation schedule and once a firm date is known will issue an update.

Please contact your V. Alexander account team with any questions and follow us on our website www.valexander.com for updates on this and other topics.

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