HTSUS HEADING 9801: U.S. GOODS (OR NOT) RETURNED
Big changes sometimes go unnoticed! On February 24, 2016, President Obama signed the Trade Facilitation and Trade Enforcement Act (Pub. L. No. 114-125) ("TFTEA") into law. Section 904 of the TFTEA amends Chapter 98 of the Harmonized Tariff Schedule of the United States ("HTSUS") and became effective on April 24, 2016. Subsection (b) covers amendments to Heading 9801 of the HTSUS and provides:
(b) Modification of Provisions Relating to Returned Property
(1) In General - The article description for heading 9801.00.10 of the Harmonized Tariff Schedule of the United States is amended by inserting after "exported" the following: ", or any other products when returned within 3 years after having been exported".
In essence, this amendment is intended to remove the requirement that goods entered under Heading 9801 be of U.S. origin if they are imported back into the U.S. within 3 years of their date of export from the U.S. In other words, goods of ANY origin can now claim duty-free entry under Heading 9801 as "U.S. Goods Returned" provided the 3-year deadline is met. What kind of documentary requirements will U.S. Customs and Border Protection require to support the new 9801 claims? The agency has yet to provide any kind of internal guidance to the ports of entry on this and related issues, so stay tuned. We'll update you in the next newsletter.
Article reprinted with permission on behalf of; The Pike Law Firm, P.C. website: pikeinfo@thepikelawfirm.com
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