Changes in customs classification and duties for importing into the United States

Starting January 1, 2022, the customs classifications for 351 product categories are changing.

The new 2022 Harmonized System (HS) nomenclature for customs classifications has been accepted by all countries that are part of the Harmonized System Convention.

The HS nomenclature is used as the basis for customs classification for importing goods worldwide. Every six months, the HS Committee of the World Customs Organization (WCO) meets to discuss potential changes to the HS. These classification changes are often due to technological advancements or other important factors, such as the difficulty of classifying items because of their unique characteristics that are not currently present in the tariff schedule.

Classification changes will have an impact on duty calculations for importing into the U.S.

Customs classification is the basis for determining the duty to be paid on the importation of a product. The reclassification of certain categories of goods will likely move some products from one class to another, which will impact the duties to be paid when importing into the U.S. Below are some of the most important product categories whose customs classifications have been revised:

• Smartphones
  The HS Committee addressed these issues because the correct classification was unclear. The new customs classification will now include a subheading and a note specifically related to these devices.
   
• Machines for metal forming
  Due to technological advancements, changes have been made to Heading 8462 to avoid classification difficulties and improve import statistics.
   
• Flat panel display modules
  The customs changes now allow for easier classification of these items by removing the need to identify the end-use of the products for classification purposes.
   
• Health and safety equipment
  Probably due to the recent COVID-19 pandemic, the HS Committee has modified some customs classifications related to diagnostic kits, placebos, and clinical trial kits. Additionally, cell cultures and cell therapy have been given more specific provisions in the latest HS nomenclature.

Finally, new subheadings have been created for dual-use goods that can also be used for unauthorized purposes. These may include, but are not limited to: (1) radioactive materials, (2) biological safety cabinets, and (3) items related to improvised explosive devices.