New Product Classifications Under HTSUS 2022

January 11, 2022

2:00 PM ET – 3:30 PM ET

Sandler Travis & Rosenberg

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Flagging for reconciliation allows importers to file their entry summaries using the best available information they have on file and electronically “flag” estimated elements, with the mutual understanding that CBP will receive the actual information at a later date.  Importers can then provide the corrected information on a new type of entry called a Reconciliation.  To read more about reconciliation, check out the link below.

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On December 23, 2021, the White House issued a proclamation to modify the Harmonized Tariff Schedule of the United States.  The White House Press Release says “Section 1205(a) of the Omnibus Trade and Competitiveness Act of 1988 (the “1988 Act”)…directs the United States International Trade Commission (the “Commission”) to keep the Harmonized Tariff Schedule of the United States (HTS) under continuous review and periodically recommend to the President such modifications to the HTS as the Commission considers necessary or appropriate to accomplish the purposes set forth in that subsection.”  On December 28, 2021 the Presidential proclamation was published in the Federal Register and the new changes will be in effect 30 days later (January 27, 2022).

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On December 13th, Chris Magnus was sworn in as the Commissioner of the United States Customs and Border Protection agency.  The new Commissioner will lead the United States’ largest law enforcement agency, with nearly 65,000 people. Magnus brings with him over 40 years of experience in law enforcement leadership from across the US and has served as police chief in several cities. Magnus has stated that he wants to work together with Congress to address the most pressing issues for the CBP.

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Earlier this year, the Uyghur Forced Labor Prevention Act was introduced to the Senate. The bill includes measures to restrict certain goods imported from the Xinjiang Uyghur Autonomous Region due to alleged human rights violations and forced labor being used to manufacture exported goods. The only exceptions for imported goods from this region will be if CBP can establish proof that the goods were not made through exploitive or forced labor practices. The bill will also empower the current administration to impose and enforce sanctions against any businesses or individuals supporting any forced labor practices within the region. This bill was passed in the House on December 8th, and the Senate on December 16.  The bill was signed by the President on December 23, 2021.

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The Census Bureau is proposing to amend its regulations to reflect new export reporting requirements related to the country of origin.  Specially, the Census Bureau is proposing to add a conditional data element, country of origin, when foreign origin is selected in the Foreign/Domestic Origin Indicator field in the Automated Export System (AES).  In addition to the new export reporting requirement, the proposed rule would make remedial changes to the FTR to improve clarity and to correct errors.

 Written comments are requested and must be received on or before February 14, 2022.

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Congress has included the Customs Business Fairness Act on Dec. 21 as part of the latest coronavirus relief package that changes the way U.S. bankruptcy law is applied to customs brokers when importers become insolvent. Under the current law, a customs broker may be ordered by the bankruptcy trustee to give back the duty paid to it by the insolvent importer during the past 90 days. It does not matter to the bankruptcy trustee whether that money has already been paid to Customs and Border Protection (CBP) to cover import duties.

The provisions amend various sections of the Bankruptcy Code on a temporary basis to provide additional relief to customs brokerage businesses directly impacted by COVID-19 pandemic.

Laurie Arnold, Regulatory Officer of JAS Forwarding USA Corporate Compliance, along with Whitmer and Worrall, led the NCBFAA's latest lobbying effort to include the bankruptcy bill in the latest COVID-19 relief legislation.  Congratulations Laurie and everyone that helped to make this happen!

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On April 10, 2020, FEMA published a Temporary Final Rule allocating certain health and medical resources for domestic use so that these resources may not be exported from the United States without explicit approval from FEMA.

An announcement was made that the Temporary Final Rule has been extended and will remain in effect until June 30, 2021.

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The U.S. Department of Commerce has published a Federal Register Notice issuing 123 new Section 232 tariff exclusions on steel and aluminum imports.  The exclusions are effective for article entered for consumption, or withdrawn from warehouse for consumption, on or after December 29, 2020.

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The U.S. Department of Commerce published a final rule in the Federal Register adopting the Aluminum Import Monitoring and Analysis (AIM) system regulations.  The AIM website consists of an online aluminum import license application platform and public AIM monitor. The license application system will be available for early registration on or after January 4, 2021, and licenses will be required for entries of covered aluminum products beginning January 25, 2021.

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The Generalized System of Preferences (GSP) has expired as of December 31, 2020.  Until further notice, GSP eligible goods entered or withdrawn from warehouse need to pay “General” (column 1) duty rates effective, January 1, 2021, 12:00 am. U.S. Customs and Border Protection (CBP) encourages importers to continue to flag GSP eligible importations during the lapse, starting January 1, 2021.  JAS Forwarding will continue to flag for GSP eligible entries.

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The Office of the United States Trade Representative (USTR) announced it has granted 19 new exclusions and 79 extensions from Section 301 China tariffs on China. These exclusions are effective until March 31, 2021.

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U.S. Customs and Border Protection (CBP) announced that the 2021 Customs Broker Triennial Status Report and fee submission period for all licensed customs brokers will run from December 15, 2020 to February 28, 2021. Each licensed broker is required to file a status report with CBP every three years.

Customs Broker Triennial Status Report and fee submissions can be made online via the eCBP portal, which accepts credit card, debit card, and digital wallet (e.g. PayPal and Amazon Pay) payments. No additional fees are charged for any payments and receipts are provided electronically.

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The export statistics are initially collected and compiled in terms of approximately 8,000 commodity classifications in Schedule B: Statistical Classification of Domestic and Foreign Commodities Exported from the United States.  The 2021 Schedule B has been released and is available online!

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Did you know that the first New Year’s celebration goes back 4,000 years ago when Julius Caesar (the emperor of Rome) was the first to declare January 1 a national holiday!  Today, approx. 45% of Americans make New Year’s resolutions that vary from losing weight, getting organized, spending less, saving more, staying fit/healthy, quit smoking and more! 25% of people give up on these resolutions by the 2nd week of January!  What are your plans?  Be sure to stick to it and reach your goals this year!  JAS Forwarding USA Compliance is sending you well wishes of health and prosperity this year!

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U.S. Customs Broker Exam Course

Date:  January 19, 2021 – April 6, 2021

Location:  WEBINAR SERIES

The Los Angeles Customs Brokers and Freight Forwarders Association (LACBFFA) is offering a 12-week-in depth VIRTUAL course for the U.S. Customs Broker exam that will cover various exam topics and review items.

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2021 CBP Trade Symposium

Date:  March 23-24, 2021

Location: Anaheim, CA

CBP announced the rescheduled dates from the Trade Symposium that was originally scheduled for March 2020.  Save the date!

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