§3005 — Title 19 Customs Duties | U.S. Code

Summary

The Commission must keep the Harmonized Tariff Schedule under continuous review and recommend changes to the President when the Customs Cooperation Council suggests Convention amendments or when other situations make changes needed. Recommended changes can be to match Convention updates; to help the Convention and its Annex be applied the same way everywhere; to keep the Schedule current with new technology or trade patterns; to reduce unnecessary paperwork; and to fix technical mistakes. Before making recommendations, the Commission must ask federal agencies and the public for their views, give notice, allow written comments, and may hold a public hearing. It must send the President a report that explains the basis for each recommendation, states the likely economic effect on any U.S. industry, and includes federal agency comments and other parties’ views or a summary. A recommendation is allowed only if it meets three tests: it is consistent with the Convention or a proposed amendment, it follows sound naming (nomenclature) rules, and it keeps overall tariff rates largely neutral; any duty-rate change must result from the naming changes the Commission recommends, and the change must not alter existing competition for the affected U.S. industry, labor, or trade.

Title 19, §3005

Customs Duties — Source: USLM XML via OLRC

(a)The Commission shall keep the Harmonized Tariff Schedule under continuous review and periodically, at such time as amendments to the Convention are recommended by the Customs Cooperation Council for adoption, and as other circumstances warrant, shall recommend to the President such modifications in the Harmonized Tariff Schedule as the Commission considers necessary or appropriate—

(1)to conform the Harmonized Tariff Schedule with amendments made to the Convention;

(2)to promote the uniform application of the Convention and particularly the Annex thereto;

(3)to ensure that the Harmonized Tariff Schedule is kept up-to-date in light of changes in technology or in patterns of international trade;

(4)to alleviate unnecessary administrative burdens; and

(5)to make technical rectifications.

(b)In formulating recommendations under subsection (a), the Commission shall solicit, and give consideration to, the views of interested Federal agencies and the public. For purposes of obtaining public views, the Commission—

(1)shall give notice of the proposed recommendations and afford reasonable opportunity for interested parties to present their views in writing; and

(2)may provide for a public hearing.

(c)The Commission shall submit recommendations under this section to the President in the form of a report that shall include a summary of the information on which the recommendations were based, together with a statement of the probable economic effect of each recommended change on any industry in the United States. The report also shall include a copy of all written views submitted by interested Federal agencies and a copy or summary, prepared by the Commission, of the views of all other interested parties.

(d)The Commission may not recommend any modification to the Harmonized Tariff Schedule unless the modification meets the following requirements:

(1)The modification must—

(A)be consistent with the Convention or any amendment thereto recommended for adoption;

(B)be consistent with sound nomenclature principles; and

(C)ensure substantial rate neutrality.

(2)Any change to a rate of duty must be consequent to, or necessitated by, nomenclature modifications that are recommended under this section.

(3)The modification must not alter existing conditions of competition for the affected United States industry, labor, or trade.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Harmonized Tariff Schedule, referred to in subsecs. (a) and (d), is not set out in the Code. See Publication of Harmonized Tariff Schedule note set out under section 1202 of this title.

Statutory Notes and Related Subsidiaries

Commission Report on Operation of Implementation of Harmonized Tariff Schedule Pub. L. 100–418, title I, § 1216, Aug. 23, 1988, 102 Stat. 1163, required Commission, in consultation with other appropriate Federal agencies, to prepare and submit to Congress and President a report regarding operation of subtitle B (§§ 1201–1217) of title I of Pub. L. 100–418, during the 12-month period commencing on

Effective Date

of Harmonized Tariff Schedule, Jan. 1, 1989, said report to be submitted to Congress and President before close of 6-month period beginning on day after last day of such 12-month period.

§3005 Commission Review Of, and Recommendations Regarding, Harmonized Tariff Schedule