If you are maintaining separate parts lists for HTS and Schedule B codes this could be a time saver. Check out the Notice to Exporters on the Harmonized Tariff Schedule (2021 Basic Revision 7).
Exporters may use HTS codes in place of Schedule B. Go to https://hts.usitc.gov/current and choose the view tab. As always, there are exceptions, but you may be able to avoid toggling between lists.
Contact mitch@52.91.45.227 for classification help.
For Your Customs Reference File:
ADD/CVD Anti-Dumping Duties and Countervailing Duties
Anti-dumping (ADD) and Countervailing duties (CVD) are intended to protect the US manufacturing industry from foreign manufacturers flooding the market at artificially reduced prices. Dumping occurs when foreign companies sell goods in the US at less than fair value.
Countervailing situations are when a foreign government gives their companies tax breaks and subsidies allowing them to sell goods cheaply in the US. ADD and CVD lead to foreign undercutting of US manufacturers prices.
Anti-dumping duties are calculated at a company-specific level, where the duty amount makes up for the difference between the foreign manufacturer’s price and fair market value. In these cases, certain companies have been identified, investigated, and additional duties have been charged on their products. Countervailing duties are determined on a country-specific level, and the duty rates counteract the subsidy or tax breaks given to the foreign manufacturer by their government with the intent of leveling the playing field.
When either of these situations occur, petitions are filed by U.S. manufacturers or businesses with the Department of Commerce (DOC) which, along with the US International Trade Commission (USITC), opens an investigation. If the results are positive, U.S. Customs and Border Protection (CBP) withholds liquidation of entries and collects ADD/CVD duties. The entries are not liquidated until the DOC instructs CBP headquarters to do so. CBP procedures affecting US importers A positive result; an investigation which finds evidence of injury to the US industry, triggers CBP procedures which affect US importers. For an Anti-dumping (ADD) case CBP issues a case number beginning with (A), Case # A…. for a particular manufacturer. Importers and/or customs brokers then must report the case number on every entry (CBP form 7501, block 29) pertaining to this manufacturer. CBP will also look for evidence of bond during their investigation. If determined guilty, CBP will set the penalty and retroactively collect additional duties through the bond. These additional duties are determined by ITC and DOC with CBP as the enforcing agency. Procedures for countervailing duties (CVD) are similar to those for anti-dumping duties (ADD): Investigation, case number beginning with (C), retroactive penalties. The difference is that under CVD the foreign manufacturer is subsidized by their government.
How to determine if a commodity falls under ADD/CVD
Your customs broker should be able to help you determine if a commodity falls under ADD/CVD. Further, you can review the scope of ADD/CVD orders to determine whether the merchandise falls under the scope of an order. The scope of AD/CVD orders can be found in several places:
• Federal Register notices from Commerce, available at
The United States International Trade Commission has updated the Harmonized Tariff Schedule of the United States effective July 1, 2021. Midyear is a good time to review your harmonized codes. The change record for this revision contains 4 pages of newly established, modified, and discontinued codes.
Using obsolete codes can result in customs delays, inaccurate duty assessments, or fines and penalties. Best practices include checking the tariff periodically. While you are at it are you sure EAR99 and NLR apply to your exports?
For assistance contact mitch@52.91.45.227
In a recent post we discussed some common reasons for customs delays. These included vague or incomplete commodity descriptions, questionable valuations, and lack of contact info for Importer of Record.
Country of Origin marking can also cause delays in clearance due to the specific regulations for imports into the US. Here is a guide produced by CBP (Customs and Border Protection) for your customs file.
https://www.cbp.gov/sites/default/files/assets/documents/2020-Jul/ICPMarking-of-COO-onUS-Imports.pdf
For those doing business in the EU, you need to be aware of new VAT regulations.
After July 1, 2021, every merchant selling, storing, or transporting goods through the EU will have to be EU VAT registered.
In previous posts I have noted that many clients automatically enter EAR 99 and NLR when submitting EEI (Electronic Export Information) filings.
EAR 99 commodities fall under US Department of Commerce jurisdiction but are not listed on the CCL (Commerce Control List). NLR indicates No License Required.
Compliance best practices include at least annual verification of classifications. The CCL Index has been updated effective 05/20/2021. The list is alphabetical and easy to check so you may find that you should be using an ECCN (Export Control Classification Number) instead of EAR 99. Here is the link to the CCL Index:
https://www.bis.doc.gov/index.php/documents/regulations-docs/2329-commerce-control-list-index-3/file
Contact mitch@52.91.45.227 for help with export compliance.
As noted in a recent post, best practices in compliance include auditing Electronic Export Information (EEI) filings periodically. Self filers as well as logistics service providers (LSPs) know that EEIs must be filed for exports of any single commodity valued greater than $2500 USD or if a license is required. EEI filing does not apply to shipments from the US to Canada unless they require a license.
In Case You Missed It we have new filing requirements for exports to China, Russia, and Venezuela:
New mandatory EEI filing requirements effective 9/27/2020. Here is one of the the FAQs from the BIS website.
Q28: Are exporters required to file EEI for shipments of commercial items valued under $2,500 if destined to China and it is for commercial end use?
A: Yes. The new mandatory filing requirement in Section 758.1(b)(10) applies to all items that have an ECCN and are destined to China, Russia, or Venezuela, regardless of value, end use or end user. The only one of the exemptions in Section 758.1(c) that is available to overcome this requirement is License Exception GOV.
Contact mitch@52.91.45.227 for EEI audits.
In several recent posts we discussed EEI filing, how to determine ECCN, and what is meant by EAR99. It is important to understand that Export Administration Regulations apply to reexports as well as exports. Here is the definition of reexports from the BIS (Bureau of Industry and Security) and a link to their publication Reexport Controls.
A reexport is the shipment or transmission of an item subject to the EAR from one foreign country (i.e., a country other than the United States)to another foreign country. A reexport also occurs when there is “release” of technology or software(source code) subject to the EAR in one foreign country to a national of another foreign country.
Export best practices mean confirming that you are in compliance on all transactions. Don’t assume, validate!
Contact mitch@52.91.45.227 for assistance.
Here is new info released on February 19, 2021 about exporting to Hong Kong.
Clients frequently say “we’ve used the same harmonized codes for years”. As a Licensed Customs Broker and consultant this tells me that I need to do some checking on the client’s behalf.
The Harmonized Tariff Schedule code is a 10-digit import classification system that is specific to the United States. HTS codes, also called HTS numbers, are administered by the U.S. International Trade Commission (ITC).
Customs brokers use the HTS, along with CBP regulations, in their day to day business. Importers and traders may also make use of the HTS in determining duty rates. Checking the validity of harmonized codes at least semi-annually is a good business practice. What may be surprising is the frequency of revisions to the HTS.
The tariff archives show that the 2020 HTS was revised 28 times. The 2021 version already lists 3 preliminary revisions.
Contact mitch@52.91.45.227 for immediate assistance.