Companies to be Given 45 Days to Implement 2007 HTSUS
U.S. Customs and Border Protection announced during its annual trade symposium Dec. 13-15 that it intends to give the trade community 45 days to implement the numerous amendments that will be incorporated in the 2007 HTSUS. These revisions are based on major changes to the international Harmonized System that have been agreed upon by members of the World Customs Organization. The changes will affect the classification of thousands of items under 240 headings throughout 83 of the 97 HTSUS chapters.

Under current law, the president has the authority to proclaim changes to the HTSUS if Congress does not object to those changes within a 60 legislative day period. According to CBP and the International Trade Commission, that period was completed during the week of Dec. 4-8, and it is anticipated that President Bush will sign the implementing proclamation before the end of December. There is typically a 15-day grace period for implementing changes made by such proclamations, but the tax and trade bill recently approved by Congress will extend that to 30 days. CBP announced at the symposium that it will allow an additional 15 days as well, for a total of 45 days. The trade community had expressed concern that 15 days might not be enough time to update corporate classification and compliance systems given the large number of changes to be made in the 2007 HTSUS.

The ITC has posted a notice on its Web site that it will issue the preliminary electronic version of the 2007 HTSUS on Jan. 1. However, this version is not expected to include the changes required by the tariff legislation recently passed by Congress or the amendments recommended by the WCO. As soon as possible after the president signs the proclamation, the ITC will post an updated electronic version on its Web site and the Government Printing Office will publish a hard-copy version.

Please forward your inquiry to Tony Collini by phone at 410-787-3999 or tonyc@jsconnor.com.