Shutdown Causing Some Confusion on Tariff Classification

The ongoing partial federal government shutdown is causing some confusion for the trade community on tariff classification. CBP’s last tariff update in the Automated Broker Interface came on Dec. 19 (see 1812190004), but the International Trade Commission has not yet issued its annual update to the online Harmonized Tariff Schedule (see 1901020021). Further complicating matters, a presidential proclamation making more changes to the HTS is now set for publication on Jan. 7 (see 1812270038).

CBP recently said that importers should not expect an update from the ITC while the shutdown continues, said Brian Barber, director of U.S. customs brokerage at Willson International. Brokers contacted by International Trade Today, including Barber, said they are still working off CBP’s Dec. 19 ABI Harmonized System Update.

Otherwise, the shutdown has generally not resulted in notable delays related to CBP, Barber said. “The support functions are where we see or anticipate a lack of service,” such as access to ABI reps, pending ruling requests, bond terminations and exclusion programming, he said. The Food and Drug Administration did recently announce its bridge offices in Buffalo and Detroit will be closed on Jan. 6 for that day only, which is one of the first day-to-day operational impacts seen by Barber. “Overall, it could be worse.” he said.

One issue that many importers are facing is that CBP will not program recently announced Section 301 exclusions in to ACE until the shutdown is over (see 1812240010 and 1812310007). “We are continuing to collect the duty even though we know they’ll be refunded as soon as the system is programmed,” said Amy Magnus, director of customs affairs and compliance at A.N. Deringer. “That’s certainly causing concern among those who have products that are now exempt.”