WCO accepts 2022 Edition of the Harmonized System.

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Looking forward to 2022, the World Customs Organization has already accepted the 2022 Edition of the Harmonized System ready to take effect on January 1, 2022.

Known as “HS 2022”, the seventh edition of the Harmonized System (HS) will be the latest revision to the uniform classifying of goods traded internationally around the globe.

As you are aware, the HS number is frequently referred to for Customs tariffs and used to track international trade statistics among the over 200+ economies actively participating in international commerce.

Upcoming changes include:

  1. e-waste product class
  2. new provisions for various novelty tobacco and nicotine products
  3. unmanned aerial vehicles (UAV’s) and drones will have their own specific provision instead of being grouped as “aircraft”
  4. smart phones will also receive their own subheading instead of being listed as “multifunctional devices”
  5. changes to subheadings for glass fibers and articles there of under heading 70.19
  6. changes to subheadings for metal forming machinery under heading 84.62 to reflect changing technologies

and many more changes. The WCO has not indicated all changes but will publish their “Recommendation” soon for a further introduction of upcoming changes.

If you have any questions regarding classification or want to be sure your goods are being entered correctly, contact experienced trade attorney David Hsu by phone/text at 832-896-6288 or by email at attorney.dave@yahoo.com, dh@gjatradelaw.com.

Appeals Court rules against Ford Motor Company, finds tariff engineering deceptive.

black thunderbird car

Photo by Clem Onojeghuo on Pexels.com

Earlier in March, I wrote a post about Ford Motor Company’s tariff engineering of importing “passenger vans” at 2.5% and then converting the “passenger vans” to cargo vans. This tariff engineering allowed Ford to pay the 2.5% for passenger vans instead of 25% for cargo vans.

Yesterday, the Court of Appeals for the Federal Circuit reversed the Court of International Trade’s holding and found that slight modifications to a vehicle so that it would not get the 25% duty on cargo trucks was deceptive and reversed the CIT’s holding that modifications done to a vehicle after importation into the US was irrelevant.

This new ruling will have a big impact on a lot of existing classifications.

The full ruling can be found at the link below:

http://www.cafc.uscourts.gov/sites/default/files/opinions-orders/18-1018.Opinion.6-7-2019.pdf

If you have a ruling, classification or tariff engineering questions, contact experienced trade law attorney David Hsu at 832-896-6288 or by email at attorney.dave@yahoo.com or dh@gjatradelaw.com.