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Updates to the Canadian Tariff and Harmonized Tariff Schedule of the U.S.

Posted July 05, 2020


With the coming into force of the new North American trade agreement (USMCA/CUSMA) customs agencies in both countries have implemented various modifications to their tariff systems. 

CBP (DHS) and CBSA Seals on Digital Background with Dictionary Word

Canada

The January 15, 2020 version of the Departmental Consolidation of the Customs Tariff based on the Canada-United States-Mexico Free Trade Agreement (and the Central European Free Trade Agreement) is now in effect as of July 1, 2020.

  • Various additions, changes, and deletions have been made to different aspects of the Customs Tariff, including classification rates, tariff treatment codes, descriptions, and Supplementary Notes.
  • Tariff Treatment changes have been made to TT Code 11 and 12. Code 11, “MT” is now referred to as “MXT” and the Code 12, “MUST” is no longer valid effective July 1, 2020.
  • A list of duty rate changes resulting from CUSMA is included in Customs Notice 20-20.

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United States

Harmonized System Update (HSU) 2005 was created on June 29, 2020 and contains sweeping changes – 124,980 ABI records and 24,925 harmonized tariff records.

In addition to implementing alterations mandated by the United States-Mexico-Canada-Agreementthe update also includes various modifications called for by the International Trade Commission's recently published Revision 12 of the 2020 USHTS.

The update includes an enormous number of changes resulting from the United States Trade Representative’s series of product exclusions to the administration’s Section 301 tariffs on Chinese imports. These exclusions are covered by the following Federal Register Notices: 

These changes all became effective on July 1, 2020.

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Should you have any questions about these tariff system changes, or other USMCA implementation issues, don’t hesitate to contact our knowledgeable trade experts.

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