Tag Archives: HTSUS

WCO accepts 2022 Edition of the Harmonized System.

January 13, 2020 By in classification, Customs Lawyer, Uncategorized, WCO Tags: , , , , , , , , , , , Leave a comment

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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.

Passenger van or cargo van? That is the question (well, for Ford at least).

March 12, 2019 By in classification, Ford, tariff engineering, Uncategorized Tags: , , , , Leave a comment

red ford van

Photo by Pixabay on Pexels.com

A current case in federal court is attempting to address when or if a passenger van is actually a cargo van.

The case involves Ford Motor Company and their imports of passenger vans that removed a row of seats and sold the vehicles as cargo vans. Cargo vans were levied a duty of 25%, whereas their passenger van counterparts were only taxes 2.5%. Specifically, Ford imported “passenger vans” into the US from Turkey. After they cleared customs, the second row of seats were removed, windows blocked and holes on the floorboard for the seats were covered.

In 2017, the Court of International Trade ruled in Ford’s favor, but the government has appealed and the U.S. Court of Appeals for the Federal Circuit heard oral arguments yesterday (Monday 11, 2019). Many are watching the ruling as this may impact what strategies companies implement when “tariff engineering” imports to avoid higher duty amounts.

Tariff engineering and finding alternate classifications under the Harmonized Tariff Schedule of the US (HTSUS) are common ways importers try to lower their duty amounts.

The Ford argument is the goods should be classified as they are imported and subsequent altering does not matter. However, the government claims Ford’s wording of the vehicle is “for the transport of persons” instead of goods, ie is a cargo van.

Will update as soon as a decision is made.

If you are interested in how your company can “tariff engineer” goods or want to discuss alternative classifications for your goods, contact experienced trade attorney David Hsu at 832-896-6288 or email David’s catchall email: attorney.dave@yahoo.com (will be sent to David’s dh@gjatradelaw.com) email.

US Court determines Thanksgiving and Christmas dinnerware is not eligible for duty-free entry into the US.

April 6, 2018 By in Uncategorized Tags: , , Leave a comment

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In an interesting case, the U.S. Court of Appeals agreed with the Court of International Trade’s argument that dinnerware decorated with “festive motifs” and frequently used during Thanksgiving or Christmas dinner do not qualify for duty-free treatment because the articles are not “for use in specific religious or cultural ritual celebrations”.

The importer’s dinnerware included holiday designs such as Christmas trees, turkeys, wreaths etc. intended for using during a traditional Thanksgiving or Christmas meal. The importer initially claimed the dinnerware was duty-free under HTSUS 9817.95.01 “Certain Festive Articles”. The importer said the Thanksgiving and Christmas dinners were specific cultural celebrations and the dinnerware was part of the performance of these celebrations. The CIT claimed, and the US Court of Appeals agreed, that while Thanksgiving and Christmas dinner were cultural celebrations, they however were not specific rituals as required under the HTSUS code.