What was one of the biggest challenges faced by petitioners in the 2016-2017 Miscellaneous Tariff Bill (MTB) petition process?
It was getting an accurate merchandise classification under the Harmonized Tariff Schedule of the United States (HTSUS).
Merchandise classification is one of the more complicated, but critically important, aspects of submitting a petition for a duty suspension or reduction under the MTB petition process, which is administered by the U.S. International Trade Commission (USITC) in accordance with the American Manufacturing Competitiveness Act of 2016. Almost 700 (28 percent!) of the petitions listed in the Commission’s final 2017 report were not recommended to Congress for inclusion in an MTB — many of these due to issues regarding classification and the ability of U.S. Customs and Border Protection (CBP) to administer the provision.
How can you avoid this problem in the upcoming MTB cycle? By getting an early start.
CBP is responsible for administering the HTSUS. Knowing your merchandise is correctly classified is a vital step in achieving a successful MTB petition filing.
CBP recommends that prospective petitioners research the HTSUS classification of their merchandise and consider requesting a binding ruling from Customs before submitting a request for a duty suspension or reduction.
One of the services of Agathon Associates is assistance in determining the tariff classification of goods. Agathon Associates principal David Trumbull is licensed by the U.S. Department of Homeland Security as a Customs Broker. He can also assist in drafting requests to CBP for Binding Ruling Letters. For more information email David Trumbull at david@agathonassociates.com.
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