Although a 2022 Preliminary Edition Harmonized Tariff Schedule of the United States has been posted by the U.S. International Trade Commission on its website, it does not include the extensive HTSUS changes made at the World Customs Organization (WCO) Harmonized System international level effective January 27, 2022.  At this time clients should use the December 2021 U.S. International Trade Commission Report No. 5240 entitled Modifications to the Harmonized Tariff Schedule, December 2021 for the specific HTSUS revisions effective January 27, 2022.  We will notify clients when the complete and final 2022 HTSUS with the WCO changes is published.

FTZ clients are reminded that the large-scale HTSUS changes necessitated by the WCO international level revisions effective January 27, 2022 must be diligently managed.  The FTZ Item Master or database should, in some manner, reference both the original HTS and the new HTS that should be utilized as of Thursday, January 27.  When merchandise is admitted to the FTZ on or after January 27, the new HTSUS number must be used on the e-214. The e-214 is programmed by CBP to reject old HTS numbers. 

Customs Cargo Release Entry (CBPF 3461) and Entry Summary (CBPF 7501) filed on or after January 27 covering merchandise in Non-Privileged Foreign (NPF) status must use the new, not the old, HTS number for the NPF merchandise.  Failure to use the new HTS number will result in rejection of the Entries.  For all merchandise admitted in Privileged Foreign (PF) status prior to January 27, the HTS number utilized when the merchandise was placed in PF status must be declared at Customs Cargo Release Entry and Entry Summary on or after January 27.  The CBP ACE system is programmed to accept old PF status HTS numbers with accompanying PF election date on both the Cargo Release Entry (CBPF 3461) and Entry Summary (CBPF 7501).  For both the Cargo Release Entry (CBPF 3461) and Entry Summary (CBPF 7501) transactions, the new HTS number must also be declared where the old HTS has expired (in the SE61 Record). This is especially important in order for the transaction to be processed against Partner Government Agency (PGA) flags.  For clients using FTZ Weekly Entry, the Cargo Release Entry (CBPF 3461) permit date controls whether or not the 2022 HTS numbers must be utilized.

The Foreign-Trades Zones Board historic position is that firms do not need to notify the FTZ Board of HTS number changes in their FTZ Production Scope as those changes are approved by merchandise description not HTS number.  However, we urge clients, as a good business practice, to prepare a chart with an explanatory memorandum that certain merchandise originally approved by the Board with a description and HTS number now has a new HTS number, but the merchandise and the description has not changed. We suggest that a copy of the memorandum be placed in your FTZ Operations Manual with a copy to our office.

While we expect that all clients have undertaken these necessary HTS update changes, we thought it best to remind everyone prior to the effective date of Thursday, January 27.  If you have questions, contact Marshall Miller, Sean Murray, Brian Murphy, or Linda King.