Industry News

USITC to Examine Proposed Changes to the HTSUS, Requests Public Comments

March 5, 2010


Last summer, the World Customs Organization (WCO) issued its fourth set of recommendations to update and clarify the international Harmonized System (HS). WCO members, which include the United States, are expected to implement the WCO’s recommendations by January 1, 2012.

In order to maintain conformity between the Harmonized Tariff System of the U.S. (HTSUS) and the international HS, the U.S. International Trade Commission (USITC) is conducting an investigation into what changes will need to be made to the HTSUS and is expected to issue a preliminary report by April 9, 2010.

As part of its effort to finalize the report, the USITC will accept any public comments on preliminary report through May 21, 2010. It will then issue a final report to President by June 25, 2010, who may then proclaim the tariff modifications recommend by the USITC following consultations with Congress.

Although the USITC has stated that changes in the international HS will not significantly affect tariff rates for products imported into the U.S., other consequential tariff changes may occur.

The WCO’s recommendations are comprised of 221 sets of amendments to international HS. Many of these amendments are geared towards environmental and social issues. For example, certain amendments would create additional subheadings for the identification of chemicals and pesticides controlled under the Rotterdam Convention and Ozone depleting substances controlled under the Montreal Protocol.

Other amendments are intended to reflect changes in international trade patterns in technology. To this end, the WCO recommendations would:

  • Simplify the HS by deleting more than 40 headings or subheadings due to their low volume of trade;
  • Separately identify certain important products in either existing or new headings; and
  • Make a number of technical amendments to clarify texts and ensure uniform application of the HS.

For a complete list of the changes recommended by the WCO, please contact a Barnes/Richardson attorney.