02-22186. Possible Modifications to the International Harmonized System Nomenclature

AGENCY:

International Trade Commission.

ACTION:

Request for public comments on proposal to delete certain low-trade categories from the Harmonized System.

SUMMARY:

The Commission is soliciting the views of interested parties on a proposal before the Review Subcommittee (RSC) of the World Customs Organization (WCO), Brussels, Belgium, to delete certain low-trade headings and subheadings from the international Harmonized Commodity Description and Coding System (Harmonized System or HS).

EFFECTIVE DATE:

August 21, 2002.

FOR FURTHER INFORMATION CONTACT:

Ronald H. Heller, Office of Tariff Affairs and Trade Agreements (O/TATA) (202/205-2596, E-Mail [e-mail]). The O/TATA fax number is 202/205-2616.

Background

The Harmonized System was established by an international Convention, which, inter alia, provides that the System should be kept up-to-date in light of changes in technology and patterns of international trade. The international HS nomenclature, which is maintained by the WCO, provides a uniform structural basis for the customs tariff and statistical nomenclatures of all major trading countries of the world, including the United States. The Commission, the U.S. Customs Service and the Bureau of the Census are responsible for the development of U.S. technical proposals concerning the HS under section 1210 of the Omnibus Trade and Competitiveness Act of 1988 (the 1988 Act) (19 U.S.C. 3010). A 1988 notice issued by the United States Trade Representative (53 FR 45646, November 10, 1988), established the Commission as the lead U.S. agency in considering proposals for HS amendments that are intended to ensure that it reflects such changes in technology and trade. The WCO expects to implement the next series of amendments to the HS nomenclature by the year 2007. As part of each review cycle, the RSC considers simplifying the HS by removing lines for which trade falls below a threshold value. HS lines that are eliminated are merged with HS lines containing like products. Noting that the HS has expanded over the years and now comprises 1,244 four-digit headings and 5,224 six-digit subheadings, the Subcommittee requested that the Secretariat examine relevant trade data and develop an initial list of four-digit headings and six-digit subheadings for which world trade in each category did not exceed US$100 million and US$50 million, respectively. Based on preliminary trade data for calendar years 1997-2000 provided by the United Nations Statistical Division, the WCO Secretariat recently published a list of 124 headings and 728 six-digit subheadings that showed world trade below the threshold values. As requested by the RSC, the Secretariat also considered further criteria relating to consistency of low trade and special circumstances (relationship to international conventions, environmental or social concerns, relative importance for developing economies) that might provide justification for retaining an HS item in spite of its low trade value. In this manner, the Secretariat reduced the list of candidates for deletion to 27 four-digit headings and 276 six-digit subheadings. Member countries are invited to examine that “short list” of potential deletions and indicate to the Subcommittee which categories should be retained because (1) more recent trade data reveals that the category in fact exceeds the threshold or (2) international concern over environmental, social or economic issues necessitates monitoring global trade on products in the category despite the low volume of trade. At its 26th session (September 2002), the Subcommittee will begin to examine the Secretariat's list and all national requests for retention of individual categories. The following is a list of the 27 headings and 276 subheadings that meet the Secretariat's full criteria for deletion from the HS. We invite the public to submit comments on this list.

Four-Digit Headings Proposed for Deletion
0503	2838	7414	8004
0509	4204	7416	8005
1402	4815	7417	8006
1403	5302	7611	9112
2305	5304	7803	9203
2611	6503	7805	9204
2612	7012	7906
Six-Digit Subheadings Proposed for Deletion
010310	030265	030561	071130
020820	030266	030563	071420
030191	030373	040520	081030
030233	030376	070910	091030
030261	030377	070952	091040
030263	030542	070970	091050
110210	251319	283610	292112
110230	251621	283670	292222
110422	251622	283920	293010
120710	270720	284110	293610
120730	270760	284120	293921
120760	280511	284150	293929
120924	281123	290314	300110
120926	282420	290362	310270
121110	282520	290515	310320
121210	282611	290614	310410
121230	282620	290714	320630
130110	282731	290715	320643
130214	282733	290820	330111
140410	282734	290942	330114
151540	282735	291213	330121
200320	282736	291242	330122
230220	283020	291421	330123
230670	283030	291522	330126
250621	283323	291523	330130
250629	283326	291534	340410
250820	283522	291535	370220
251311	283523	291731	370520
380520	500390	530210	551433
382420	520631	530290	551439
392072	520632	530410	551592
401013	520633	530490	560420
401036	520634	530511	560710
410310	520635	530519	570251
420610	520641	530521	570252
420690	520642	530529	570259
430130	520643	530590	580310
430170	520644	540320	580390
430213	520645	540610	600510
441131	520823	540620	610110
441139	520853	550610	610311
441223	521012	550992	610312
470411	521022	551322	610319
470419	521042	551332	610321
480230	521052	551333	610411
480910	521121	551342	610412
481430	521122	551343	610421
481610	521129	551413	610792
481630	521141	551431	611110
500310	521143	551432	611410
611720	640330	811230	900620
620321	650692	811240	900662
620510	660310	842520	902740
620792	680222	842850	903130
620910	681130	843352	910112
621131	720280	844841	910620
621310	722520	845620	911220
630252	722693	847040	911290
630292	722694	847220	911410
630293	722910	850530	911420
630311	731413	850920	911440
630611	731910	850930	920410
630621	740110	851921	920420
630631	740120	851929	920910
630639	740323	851940	920920
630641	740722	854340	920993
630649	741420	860620	930610
640191	741490	880110	960420
640230	810195	880190	961490

Copies of the Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which incorporates the international Harmonized System in its overall structure, can be found on the USITC's World Wide Web (WWW) site, http://www.usitc.gov. Hard copies and electronic copies of the HTSUSA can also be found at many of the 1,400 federal Depository Libraries located throughout the United States and its territories; further information about these locations can be found on the WWW at the following location (URL): http://www.access.gpo.gov/​su_​docs/​fdlp/​libpro.html,, or by contacting GPO Access at the Government Printing Office, 1-888-293-6498. Copies of the WCO Secretariat's report on its analysis of trade data and other factors, its list of low-trade HS lines and its indications of suggested deletions (WCO Doc. NR0270E-B1) is available from the USITC Office of Tariff Affairs and Trade Agreements, as indicated above (See FOR FURTHER INFORMATION CONTACT). This proposal is part of a comprehensive review of the international HS being carried out by the RSC. Its implementation internationally would not require that domestic tariff rates or statistical coverage be eliminated from the Harmonized Tariff Schedule of the United States Annotated (HTSUSA). Any such consequential amendments would be separately considered by the Commission at a later date, pursuant to section 1205 of the 1988 Act. Section 1205 requires that existing duty treatment be retained whenever possible.

Request for Proposals

The Commission is seeking comments on the list of proposed deletions from the HS and, in particular, on those categories for which the United States may request retention. Interested parties, associations and Government agencies should submit specific HS category numbers from the above list which they feel should be retained in the HS and, for each category, the reason for retaining the category in the international system (including, where relevant, trade data).

Deadline

Suggestions must be received no later than the close of business, September 6, 2002, in order to be considered by the Commission.

Written Submissions

All submissions should be addressed to the Secretary, United States International Trade Commission, 500 E St., SW., Washington, DC 20436. Commercial or financial information that a party desires the Commission to treat as confidential must be submitted on separate sheets of paper, each clearly marked “Confidential Business Information” at the top. All submissions requesting confidential treatment must conform with the requirements of section 201.6 of the Commission's rules of practice and procedure (19 CFR 201.6). All written submissions, except for confidential business information, will be made available for inspection by interested persons. TDD Access: Hearing impaired individuals are advised that information on this matter can be obtained by contacting our TDD terminal on [phone]. World Wide Web Access: This notice, and any subsequent notices published pursuant to section 1210 of the 1988 Act, may be obtained from the ITC Internet web server: http://www.usitc.gov.

By order of the Commission.

Issued: August 26, 2002.

Marilyn R. Abbott,

Secretary to the Commission.