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There has been much confusion and apprehension concerning the international changes within everyone's tariff. There
are only two countries that have completed their review and have prepared their tariffs for January 1, 2007. Those countries are Canada and Mexico.
In the U.S. we are hindered by our own legislation. Please review the information below concerning this subject. I know everyone who
exports to the U.S. wants to ensure their products aren't stopped at the border because of incorrect classifications come January 1. But if you use the 2006 classifications you stand a very good
chance of having erroneous classifications.
Within the notice below is a link to a Website that has the draft tariff changes. Of course these can't be publicly published until
Congress does its “thing.” Please be prepared in advance. Once the legislative requirements have been fulfilled the change and implementation will hit very quickly. Don't be left in
the dark, I recommend you review the proposed changes and restructure your classifications accordingly.
Information Notice HTS 2007
Harmonized Tariff Schedule of the United States (HTSUS) will be amended based on major changes to the international
version of the Harmonized System. The amendments to the HTSUS are expected to affect the classification of many imported products covering 83 chapters of the HTSUS. The draft changes to the HTSUS can
be viewed on the U.S. International Trade Commission (ITC) website: http://hotdocs.usitc.gov/docs/tata/hts/Pub3851.pdf.
By U.S. law, the President cannot proclaim the implementation of these amendments in the HTSUS until a required 60-legislative-day
Congressional layover period is completed. The Congressional layover "clock" began in late May, but was stopped each time either the House or the Senate was not in session. The layover
period will resume during the week of December 4, 2006, when both the House and Senate reconvene, and will continue until it has been completed.
Upon the expiration of 60-legislative days, in the absence of Congressional action, the President will sign an implementation
proclamation, which is then published in the Federal Register and takes effect after 15 days. At that time, an updated electronic version will be posted on the ITC website, and the Government
Printing Office will publish a hard-copy version of the 2007 HTSUS.
Customs and Border Protection (CBP) and the Trade cannot implement any programming changes until the current draft report becomes final
by Presidential proclamation. CBP has been advised by the Trade community that programming to reclassify and update these internal software systems could take longer than the 15-day implementation
time frame depending on the complexity and size of their import and export operations. CBP is working with the United States Trade Representative and Congress for a workable implementation solution.
If the date of proclamation and subsequent effective date will not allow sufficient time for transition to the new HTSUS for 2007, CBP
headquarters will deploy procedures to the Field Offices and the Trade community.
Questions from the importing community concerning this notice should be referred to their local Customs port of entry.
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