The Harmonized Tariff Schedule of the United States (HTSUS) will undergo major changes on Jan. 1, 2007, as a result of changes to the Harmonized System (HS) recommended by the World Customs Organization. These adjustments are intended to reflect extensive worldwide changes in technology, trade patterns, and social and environmental developments.

If you are an importer or exporter with a large product line, you should start preparing now for these changes. Classifying your products correctly will help you minimize customs delays and save money once the revised codes are in effect.

With the revisions to the tariff schedule, product classifications may change within the same tariff heading, or may change to an entirely new heading.

Key points about the Jan. 1 changes include the following:

• This is the third major revision to the Harmonized System since its global adoption in 1988.
• The changes include 354 sets of amendments.
• 83 chapters and 240 headings of the HS are affected.
• Almost 10 percent of the eight-digit US HTS classifications will change.

These changes will require:

• Addition of new 4-digit headings or 6-digit subheadings.
• Deletion of outdated 4-digit headings or 6-digit subheadings.
• Changes to existing nomenclature text.
• Changes to various Chapter and Section Notes.

The overall effect is a reduction in the total number of HS-4s (4-digit HS numbers) in the Harmonized System.

Because of the enormous task of incorporating the amendments into the tariff structure of all participating countries, there may be delays in implementing the HS 2007 changes in some areas. Most of the major economies plan to implement them early in 2007, but other countries may incorporate them over the entire course of 2007 and beyond.

Additional information:

• The U.S. International Trade Commission (USITC) administers the HTSUS, and full details of the Jan. 1 changes are available now from the USITC. Go to the USITC Web site to see Publication No. 3851, April 2006, which contains a listing of all affected headings.
• Go to the World Customs Organization Web site for detailed information on the global changes to the HS.
• The Harmonized System is used by more than 200 countries and customs services around the world, and is used in regulating approximately 98 percent of all goods traded globally.

Use FedEx^® Global Trade Manager to check your HS codes

After Jan. 1, 2007, you can go to fedex.com (Link to fedex.com/us/international) and use the Find International Documents or Estimate Duties & Taxes applications to determine any new HS codes.

FedEx Trade Networks can help

A dedicated team of classification personnel from FedEx Trade Networks is available to update your entire product inventory. Classification projects will be used to update your FedEx Customer Profile Guide. For more information, call 1.866.268.7602 or e-mail ftninfo@fedex.com

The information on this page is intended for general information purposes only and does not constitute legal advice. To the best of our knowledge it is accurate as of the date of publication; there can be no guarantee that such information will continue to be accurate in the future. Certain links in this site connect to other Web sites maintained by third parties over whom FedEx has no control. FedEx makes no representations as to the accuracy or any other aspect of information contained in other Web sites.