Transcript 2007 HS Amendments (2d Update)

2007 HS Amendments (2d Update)
Pisani & Roll Teleconference
October 11, 2006
John Smirnow
Of Counsel
Pisani & Roll
1717 K Street, NW
Suite 600
Washington, DC 20036
Tel 202.466.0960
Fax 877.674.5789
[email protected]
www.worldtradelawyers.com
Outline
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2007 HS Update & Future Changes to the HS
•
2007 Explanatory Notes
•
Release Dates – 2007 HTSUS and Correlation Tables
•
Customs Rulings
•
Tariff Shift Rules
•
Certificates of Origin
•
Implementation Outside the United States
•
Establishing Reasonable Care in an Uncertain Environment
•
Stay Tuned . . .
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2007 HS Update & Future
Changes to the HS
•
The 2007 HS amendments should not result in tariff rate changes or changes in
country of origin based on amended tariff shift rules.
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Each year, the WCO Secretariat receives 400-500 requests for informal
classification advice.
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The Harmonized System Committee reviews approximately 50 classification
issues each year, including changes to Section and Chapter notes and Explanatory
Notes.
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The 2012 review has commenced. Chapters 28 and 29 (chemicals) appear ripe
for revision.
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WCO rules of origin may be amended to conform to harmonized rules of origin
under the WTO.
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2007 Explanatory Notes
• Hard copy and CD available at www.wcoomd.org.
Not yet available electronically.
• The Explanatory Notes are subject to ongoing
amendment/clarification.
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2007 Explanatory Notes (Ch. 84)
• The definition for automatic data processing (“ADP”)
machines has been revised to (1) recognize that ADP
machines are digital, and (2) clarify the classification of
separately presented printers, network equipment,
loudspeakers, microphones, cameras, and monitors and
projectors used in conjunction with a computer.
• Printers & multifunction devices
• New Heading 84.86
– What does the phrase “semiconductor manufacturing
equipment” encompass?
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2007 Explanatory Notes (Ch. 85)
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Revised Note 4 to Chapter 85:
(a) “Solid-state non-volatile storage devices” . . . are storage devices with a
connecting socket, comprising in the same housing one or more flash memories .
. . in the form of integrated circuits mounted on a printed circuit board. They
may include a controller in the form of an integrated circuit and discrete passive
components, such as capacitors and resistors;
(b) The term “smart cards” means cards which have embedded in them one or
more electronic integrated circuits . . . in the form of chips. These cards may
contain contacts, a magnetic stripe or an embedded antenna but do not contain
any other active or passive circuit elements.
•
Merger of headings 85.23 and 85.24 into heading 85.23 (discs, tapes, solid-state non-
volatile storage devices, “smart cards” and other media for the recording of sound
or of other phenomena, whether or not recorded, including matrices and masters
for the production of discs, but excluding products of Chapter 37)
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2007 Explanatory Notes
(Chapters 85 & 90)
• Revised Note 5 to Chapter 85
– Multichip integrated circuits
• New Note 6 to Chapter 85
– Connectors for optical fibers, optical fiber bundles or
cables (revised heading 85.36, to include “connectors
for optical fibers, optical fiber bundles or cables”)
• Chapter 90 (Note 3)
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Release Dates - 2007 HTSUS and
Correlation Tables
• 2007 HTSUS
• 10-digit Correlation Tables
• Industry Lobbying Efforts
– Grace period
– Certificates of Origin
– Training
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Customs Rulings
• I have binding rulings for products
whose tariff item has changed. Do I
need to file new ruling requests?
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Tariff Shift Rules
• How will the 2007 HS amendments affect FTA
tariff shift rules covering my products?
• Future Updates
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Certificates of Origin
• Our practice is to update blanket certificates of
origin at the end of each year for the coming year.
If we update our blanket certificates by the end of
2006, will we be required to conduct another
update in January 2007?
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Implementation Outside the U.S.
•
During the first and second revisions to the HS, only 45% and 58%, respectively, of
member countries were able to implement the changes on time.
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Canada – 2007 Customs Tariff and 10-digit correlation table are available at:
http://www.cbsa-asfc.gc.ca/general/publications/customs_tariff-e.html
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Mexico – On track for Jan. 1, 2007 implementation.
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Japan – On track for Jan. 1, 2007 implementation. English version not yet available.
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EU - The 2007 EU tariff schedule will be implemented by the amending Annex I of the
Council Regulation (EEC) No. 2658/87 on the tariff and statistical nomenclature and on
the Common Customs Tariff. This amendment will enter into force on January 1, 2007.
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Australia – On track for Jan. 1, 2007 implementation. Information available at:
http://www.customs.gov.au/site/page.cfm?u=5662#e177
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Establishing Reasonable Care in
an Uncertain Environment
• Training
• Tariff Databases
• Certificates of Origin
• Work With Your Broker
• Will Your Suppliers Be Prepared?
• Antidumping Duties
• Monitor Future Developments
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Stay Tuned . . .
• Future Updates on 2007 HTSUS
• Country-specific Implementation Updates
• 2012 HS Updates
• HSC Updates
• WTO Rules of Origin Harmonization and
Impact on WCO Rules of Origin
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We Can Help . . .
• Training
• Classification Advice
• Ruling Requests
• Tariff Shift Rules
• 2012 Amendments
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Contact Information
• John Smirnow, Of Counsel - 202. 508.8256
[email protected]
• Robert Pisani, Partner - 202.466.0960
[email protected]
• Michael Roll, Partner – 310.826.4410
[email protected]
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