Foreign Trade Zone Considerations
Timing of Tariff/HTS changes is important when it comes to Foreign Trade Zones. When filing an 06 Weekly Entry, the Entry Begin Date will serve as the HS Effectivity date for customs reporting and validation of Non-Privileged Foreign (N-status) items. This means that if your Entry starts prior to 2022, you will want to use the current/existing 2021 HS Numbers for these N-status goods, because US Customs will validate against the 2021 tariff schedule. If the Entry Begin Date is in 2022, then you will want to use the new 2022 numbers for N-status items. As a reminder, all Privileged Foreign (P-status) material should retain the original HTS classification at time of privileging that layer, as that is the date used for the HS effectivity validations by US customs.
Please note however that changes on US Customs’ side are not always instant, and these changes may not be in place on 1/1/2022. Be on the lookout for CSMS messages posted to your system under Status Alerts which may have relevant information from US Customs regarding the changes.
Future HS
The “Future HS” screen is used for controlling classification changes. This screen should be used only for updating classifications going forward. A good example of when to use this screen is when U.S. Customs updates a tariff classification on a part.
For all future transactions in this example, the new HS number would be used for classifying the part.
This screen can be opened by choosing “Future HS” from the “Maintenance” menu. The “Future HS” screen has search capabilities consistent with the “Maintenance Screen Search Criteria” section of this User Guide.
This screen will not update previously generated reports. This screen allows changes to be made in one place, but will update the item master records, current FIFO processing transactions, current inventory layers, and unprinted shipments.
Checking the “Keep PGA Records” box will also ensure that existing PGA records associated with the product are included in the changes.
To propagate the changes across all the aforementioned tables, click “Process”.
important
Do not press the “Process” button until the HS Number needs to be changed, not any earlier.
If any parts in the table have an “Apply Date” in the past, a validation warning will appear on the screen.
To add a new record, click “Add New Record”. Fill out the fields presented when the page refreshes. Select “Save” to save changes.
To modify an existing record, click the “Edit” link in the corresponding row and edit the text fields. Select “Save” to save changes.
To delete a record, click the “Delete” link in the corresponding row.
Import Future HS
To import Future HS information, click the “Browse” button. Once the spreadsheet is selected, click “Upload and Import Data”. The information will then be populated into the system. Note that if conversion factors are not to be updated, use “-1.”
Not Applied
The records in the “Not Applied” tab are products that have been assigned a Future HS Number that has not yet gone into effect.
To apply a Future HS Number to a product, click on the “Add New Record” button.
Enter the product information, as well as the new HS Number. Once this information has been provided, click “Insert”. Note that if conversion factors are not to be updated, input “-1.”
The record will now appear in the “Not Applied” list until the Future HS Number goes into effect. Modifications to this record can be made by clicking “Edit”, and the record can be removed by clicking “Delete”.
Applied
The records in the “Applied” tab are products that have been assigned a Future HS Number that has already gone into effect.
Related Content
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World Customs Organization (WCO) Tariff Updates
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