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Apparel | Newsletter |
| Tariff Classification Of Certain Electronic Products Falling Under HTS 8543 Changed |
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May 5, 2006 In a Presidential Proclamation dated March 31, 2006, it was announced that a zero rate of duty was being established for multichip integrated circuits, which, in the past, had been classified by Customs under tariff item 8543.89.96. This Proclamation, however, which appeared in the Federal Register on April 4, 2006, created some confusion and uncertainty because it stated: “the HTS is modified to provide for application of zero duties to goods entered under tariff item 8543.89.96.” Item 8543.89.96, however, covered more than just multichip integrated circuits. Because the intent of the Presidential Proclamation was to establish a zero duty rate for only multichip integrated circuits, the Office of the U.S. Trade Representative determined that technical corrections to the tariff needed to be made. Subsequently, in a Federal Register notice dated April 28, 2006, the Trade Representative corrected the inadvertent error in the Presidential Proclamation, and made conforming changes to the HTS so that the intended tariff treatment is provided. The notice provides that, effective April 1, 2006, subheading 8543.89.96 is deleted and replaced by two new subheadings:
Accordingly, products other than multichip IC's that were previously classified under subheading 8543.89.96 should now be entered under new subheading 8543.89.97, at the existing 2.6% duty rate. The April 28 notice also states that the following new additional U.S. Note 14 to Chapter 85, is inserted:
If the prior but no longer existent subheading 8543.89.96 is used for any product, the entry will be rejected by the ABI system, and the entry will need to be re-filed using the new, appropriate subheading. If you have any questions regarding the change in the duty rate for multichip integrated circuits, or the Federal Register notice that published the changes, please contact George R. Tuttle at (415) 288-0425 or grt@tuttlelaw.com, or George R. Tuttle III at (415) 288-0428 or geo@tuttlelaw.com. George R. Tuttle and George R. Tuttle, III are attorneys with the Law Offices of George R. Tuttle in San Francisco. The information in this article is general in nature, and is not intended to constitute legal advice or to create an attorney-client relationship with respect to any event or occurrence, and may not be considered as such. Copyright © 2006 by Tuttle Law Offices. All rights reserved. Information has been obtained from sources believed to be reliable. However, because of the possibility of human or mechanical error by our offices or by others, we do not guarantee the accuracy, adequacy, or completeness of any information and are not responsible for any errors, omissions, or for the results obtained from the use of such information. |
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