ITC Releases 2021 Basic Edition of Tariff Schedule, Implements 4-Month UK Tariff Pause

The International Trade Commission released the 2021 Basic Edition of the U.S. Harmonized Tariff Schedule March 15. The new edition, which follows three “preliminary” updates issued earlier this year, implements the recently announced four-month pause on Section 301 tariffs on goods from the United Kingdom, effective March 4 (see 2103040043). It also adds a new provision on the USMCA tariff-rate quota for sugar-containing products from Canada. The four-month suspension of Section 301 tariffs on all European Union goods, which took effect March 11 (see 2103120047), is not implemented in this edition.

New U.S. Note 21(u) is added to the Subchapter III of Chapter 99 of tariff schedule. It says: “The U.S. Trade Representative has determined that additional duties imposed by subheadings 9903.89.05, 9903.89.07, 9903.89.10, 9903.89.13, 9903.89.16, 9903.89.19, 9903.89.22, 9903.89.25, 9903.89.28, 9903.89.31, 9903.89.34, 9903.89.40, 9903.89.43, 9903.89.46, 9903.89.49, 9903.89.50 and 9903.89.55, and as provided by their associated subchapter notes, shall not apply to articles the product of the United Kingdom that are entered on or after 12:01 a.m. eastern standard time on March 4, 2021 and before 12:01 a.m. eastern daylight time on July 4, 2021.”

U.S. Note 21(a) to Subchapter III of Chapter 99 is amended to say that Section 301 tariffs on EU goods apply “except as provided in note 21(u) of this subdivision.”

The new provision on the USMCA tariff-rate quota for sugar-containing products from Canada is added in new paragraph (b)(4) to U.S. Note 10 of Subchapter XXIII. The new paragraph specifies that, for in-quota sugar-containing products from Canada, “[O]riginating goods that last underwent production in Canada shall be eligible for entry under subheading 9823.10.02 regardless of whether they qualify to be marked as a good of Canada pursuant to U.S. law.” The change record says the change takes effect as of July 1, 2020.

Finally, the ITC removed an expired provision for certain tariff-rate quotas under the U.S.-Morocco free trade agreement that expired at the end of 2019. The deleted paragraph is U.S. Note 12(c) to Subchapter XII of Chapter 99. Though the change record instead said that the ITC deleted U.S. Note 21(c) to Subchapter III of Chapter 99, that reference is in error, said an ITC spokesperson. The change record had not been corrected as of press time.