One HTS Code Nullifies Duty Rate On Another HTS Code (Doc ID 2706177.1)

Last updated on OCTOBER 02, 2023

Applies to:

Goal

The item has an additional HTS, which is a special legislated provision for temporary modification to the duty as a result of the first HTS assignment. (An 8-digit HTS is assigned which essentially which causes - one or more provisions in hts-chapters 1 through 98 (HTS codes starting from 1 through 98) are "temporarily amended or modified"

Now, let's say:
  1. Item-A has HTS: 9506910030 assigned - which attracts a 4.6% duty
  2. Now by adding an additional HTS: 99021782 (which has a 0% duty),..it basically "overrides" the duty assessed by the first HTS (9506910030) and nets it to 0% duty for the item.

These modifications to duties are temporary in nature - User usually have limited time windows, ie., effect to/from dates. The duties (by virtue of their original HTS assignments) will reapply once temporary modifications expire.

• In this scenario, just to clarify, there a single item that has two HTS codes associated with it for the same origin country and import country, but the duty calculated by only one of the HTS codes should apply?
• What information determines when one HTS nullifies another?
  o At what level or against what entity is the determining information defined?
  o How often will the determining factors change and at what point in the import process might the change occur?
• If a particular HTS code’s duty is nullified by the other, why is the nullified HTS code even associated with the item?
 

Solution

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