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Harmonized
Tariff Numbers
Effective
January 1, 2007 the most extensive changes to the Harmonized System
in its history will take place.
This means that a very large number of commodities will have
new harmonized numbers and Schedule B numbers.
This means dramatic changes for importers and exporters.
Not
only do changes themselves usually present some problems, but the
changes have not yet been printed.
Most of the countries who are parties to the Harmonized
System, including the U.S., have approved the amendments, but the
U.S. is one of the countries who has not yet printed the changes.
You should stay in close contact with your freight forwarder
on export shipments or your customhouse broker on import shipments,
so that your shipments don’t get held up due to wrong numbers on
customs documents. Hopefully
we will soon have an indication about using old numbers a while
longer,
or having the new numbers printed and available
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GSP
Last
issue we indicated a possible problem with the Generalized System of
Preferences expiring again causing a disruption in the import
process along with confusion about paying full duties on some
commodities from certain countries, then filing for a refund, when
the GSP is extended. The House has passed a two-year extension
of the GSP and it appears the Senate will also pass the extension.
It is felt the President will sign the extension bill when and if it
arrives at his desk. We don’t want to count chickens before
they hatch, but now we have all hopeful signs.
Bankers Bible 
If you are involved with international letters of credit, you are
familiar with UCP 500, commonly called Brochure 500. This is
the bankers bible and contains 49 articles or rules with which
everyone must comply in order for the buyer to pay the seller
without problems or discrepancy costs via a letter of credit.
UCP 500 has been in effect for over a decade and has been changed.
The
new bankers bible is UCP 600 and will go into effect on July 1,
2007. The new brochure 600 has only 39 articles and should be
available and printed in the next month or two. It would be
very wise of all international traders to visit their bankers and
ask for a copy. Then compare the old brochure 500 with the new
brochure 600. Next discuss the changes with your banker to get
the banker’s perspective. Then discuss the changes with your
freight forwarder and customhouse broker to get the perspective from
buyer’s or seller’s point of view. Don’t wait till the
last minute. Changes will be extensive and are expected to
deal more with electronic letters of credit.
Santa
Rumor
has it that Santa may have some problems with Customs around the
world in documenting his cargo. Somehow he always works things
out. May we all have a very Merry Christmas and Happy and
Healthy and Prosperous New Year.
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