USITC to Implement Updated Harmonized Tariff Schedule Effective January 27, 2022

Sweeping changes to the Harmonized Tariff Schedule of the US (HTSUS) will go into effect this week when the US International Trade Commission (USITC) implements the World Customs Organization’s (WCO) five-year overhaul of the Harmonized System tariff nomenclature.

The modifications will modernize the tariff code for hundreds of imported products and product groups, add tariff headings and subheadings for new categories of imported products, and clarify interpretive legal notes throughout the tariff code. Importers would do well to identify products now that may be impacted by the new or revised HTSUS classifications and ensure their importing systems are appropriately updated.

The USITC maintains the official publication of the HTSUS and all modifications to implement the US’ obligations under the WCO’s International Convention on the Harmonized Commodity and Coding System (HS Convention).[1] In April 2021, the USITC reported the proposed modifications to the tariff code resulting from the WCO’s latest 5-year review,[2] and subsequently published corresponding modifications to the HTSUS in December 2021, as Publication 5240.[3] The president formally adopted USITC’s recommendations in Presidential Proclamation 10326 of December 23, 2021 (published in the Federal Register on December 28, 2021). By law, the changes cannot be implemented until 30 days after publication of the proclamation and therefore will go into effect on January 27, 2022. 

The following table lists broad categories of products and tariff headings affected directly by the WCO revisions. Note that this listing is not exhaustive. The WCO revisions will also update Section and Chapter titles and legal notes throughout the HTSUS, thereby modifying the scope and interpretation of tariff provisions not on this list. 

Until the USITC publishes the updated HTSUS, importers should refer to USTIC’s Publication 5240 as the official list of modifications to the tariff code to implement the HS Convention recommendations. The WCO’s Correlation Tables, available here, explain the nature of each revision to the tariff code and are a useful tool in understanding the changes.

Importers who have not already done so should now review carefully the changes to the HTSUS described in Publication 5240 and the WCO Correlation Tables, including conforming revisions to other provisions of the tariff code. Importers should determine the impact of the changes on current and future imports, identify changes to current tariff classifications that must be implemented by January 27, and evaluate any corresponding impact – including potential duty-saving opportunities – to imports under free trade agreements and other duty preference programs. They may also work with their customs brokers to ensure that changes are properly applied to future imports. 

Williams Mullen attorneys assist clients with all aspects of compliance with US import and customs laws and regulations. Should you have questions about changes to the tariff classifications of imported products under the new revisions to the tariff code or other importing matters, please contact your Williams Mullen attorney or Christopher Skinner at 202.293.8129 or cskinner@williamsmullen.com.