What Are US HTS Chapter 99 Measures?
Harmonized Tariff Schedule of the United States (HTSUS) is divided into chapters, with Chapters 01-97 covering standard, internationally harmonized classifications for goods, while Chapter 99 serves a distinct purpose for temporary or special trade measures.
Regular HTS Codes (Chapters 01-97):
These codes are part of the global Harmonized System (HS) developed by the World Customs Organization (WCO). They provide a standardized, internationally recognized framework for classifying goods traded worldwide.
Each code consists of 10 digits, with the first six assigned by the World Customs Organization as part of a globally harmonized system. The remaining digits provide further classification specific to the United States.
These codes are used to:
- Determine the base customs tariff rates based on the type of product.
- Track trade statistics globally and nationally.
- Ensure consistency in classifying goods across countries for the first 6 digits
HTS Codes in Chapter 99:
Chapter 99 is a U.S.-specific chapter not part of the global HS framework provided by WCO. It is used for temporary, special, or country-specific trade measures that don’t fit within the standard classifications of Chapters 01-97.
Codes in Chapter 99 are 10 digits and begin with "99" to distinguish them from standard HS codes. They are linked to specific trade policies
Why Both Exist:
- Chapters 01-97 ensure global standardization for trade consistency and statistical purposes, as they align with the HS system used by almost all countries (i.e. The World Customs Organization (WCO) member countries)
- Chapter 99 allows the U.S. to address national priorities or temporary trade measures (e.g., tariffs, quotas, or exemptions) that are unique to U.S. trade policy and not covered by the global HS system.
! Importers must check both the base HTS code (Chapters 01-97) for the standard classification and any applicable Chapter 99 codes for additional duties or exemptions.
Chapter 99 of the U.S. Harmonized Tariff Schedule (HTS) is a special section which contains temporary legislative measures
that modify or supplement the tariff provisions found in Chapters 1 through 98 of the HTS. These measures include:
-
Additional duties: Implementing trade remedies like Section 301 tariffs (e.g., on Chinese goods),
Section 232 tariffs (e.g., on steel and aluminum), or recent reciprocal tariffs.
-
Temporary modifications to tariff rates: Chapter 99 includes provisions that temporarily amend or modify
the tariff rates and classifications in Chapters 1–98 of the HTS. These measures are typically time-bound and apply only to goods entered during a specified period
-
Special Provisions: Addressing unique trade scenarios, such as temporary tariff suspensions or modifications under trade agreements,
import restrictions established under various trade laws.
-
Trade Agreements: Goods from Israel, Morocco, Australia, Costa Rica, Peru, Colombia, Panama, Korea, and others under specific trade agreements.
How Are US HTS Chapter 99 Measures Applied?
- Importers must first classify goods under the appropriate HTS code from Chapters 1–98 to determine the base tariff rate.
- If a Chapter 99 provision applies, the importer must also report the corresponding Chapter 99 HTS code alongside the primary HTS code.
- For example,
-
Section 301 tariffs on Chinese imports
require reporting a Chapter 99 subheading (e.g., 9903.88.03) in addition to the standard HTS code, or
-
Section 232 tariffs on steel imports may require Chapter 99 HTS 9903.81.87 along with the standard HTS code
The screenshot below illustrates the Base Tariff Rate and Chapter 99 temporary tariff rates imposed on passenger vehicle imports from Japan to the U.S