The International Trade Commission has proposed several hundred modifications to tariff numbers, including changes to Chapter Heading and Sub-Headings, deletions, additions, mergers and break-up of existing Harmonized Tariff Schedule (HTS) classifications. These changes have been approved by United States Congress and are pending Presidential signature. Once signed, the effective date will be for imports into the United States arriving on and after January 1, 2007.

Click here to view the proposed HTS classification changes. While the majority of the changes occur in chapters 84, 85, 87 and 90, there are some changes in almost all of the chapters.

As a general rule, the implementation of the changes will be duty neutral. However, it is possible that some of the changes might affect eligibility for preferential treatment under various U.S. Free Trade Agreements (e.g. Tariff Shifts, GSP, etc.). Additionally, failure to present proper entry can result in delayed release, penalties and demands for redelivery with recurring entry errors resulting in more sever penalties and less opportunity for mitigation.

Your UTi Brokerage representative can discuss these changes with you to determine if and how you are affected.

Regards,

Steven T. Bernstein
Vice President – Customs and Compliance