HTS and CoO Required on ALL Packages

[wilsonharborsales]

HTS codes and Country of Origin are now required on all packages entering the USA. Many packages are still not clearing because the HTS or CoO are not in the manifest. This effectively means that the de minimis is gone, but no tariffs or taxes are assigned to the shipment unless China or Hong Kong are the CoO. Chit Chats will no longer accept items where China or Hong Kong are the CoO.

Has eBay sent anything out? Seller protections or any announcements? I don’t think they have updated their labels to include the longer form declaration.

This does likely mean that the infrastructure is being put in place to apply tariffs in the future to Canadian shipments.

[snopp81]

Where yo sorced the item? how does that work for people who buy storage units? do we send them those invoices? 

[artdeco_rater]

Except ChatGPT stopped at six digits (plus 0000) for 10 digits on books from anywhere to the USA.  If you put that same query into the Canada Post site, it drills down to different types of books.  So Chat GPT is not necessarily to best source for HTS codes.

[byto253]

The clerk has fields to enter both COO and HS code.  I would print it or write them out and tape it to the package.  

[mrdutch1001]

Country of Origin on Shipping labels refers to country where item made/country of manufacture/Product of country

[sin-n-dex]

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@mrdutch1001 wrote:

Country of Origin on Shipping labels refers to country where item made/country of manufacture/Product of country

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I told the story about the Tshirt from China to my business partner, and he said "what if the tshirt was made in China, imported blank, imprinted with designs here to make it something unique, and then shipped to the US?" He says that would have made it a product of Canada, but the shirt still says "made in China".

I make purses and I have a hard time determining where exactly the product comes from. The quilting fabric came from Australia, there's two pieces on the outside showing the design, the strap material and plain fabric for the inside was purchased in Canada, and I'm in Canada and sewn it together. It has hardware, which comes from Hong Kong or Taiwan. I've always put it as a product of Canada (the label I sew inside each bag says "made in Canada").

C.

[nhl_automotive]

If this is true, Canada Post hasn't told their employees. I asked this question today and they said they had no instructions to include COO or HTS on packages heading to the USA. Now it's probably a good idea and will help the package get through quicker. I have been including it on all shipments since Feb 1 and so far everything has cleared. 

[ilikehockeyjerseys]

https://www.trade.gov/rules-origin-substantial-transformation

Substantial Transformation Examples:  

• Sugar from Country A, flour from Country B, dairy products from Country C, and nuts from Country D are taken to Country E. In Country E, these products are further manufactured into cookies. (The separate ingredients were substantially transformed into a product of Country E, in that a new type of goods resulted from processing).  
• Fresh vegetables grown in various countries are taken to another country to be mixed together and frozen. (The vegetables were NOT substantially transformed into products of the country where mixing and freezing occurred, and the mixture must be labeled with the origin of each ingredient).  
• Repackaging, dilution with water, and similar minor processes usually do NOT cause a substantial transformation. Assembly or disassembly may result in a substantial transformation, depending on the nature of the products involved and the complexity of the operations. 

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There are laws that cover this. My guess would be that a screen printing on a t-shirt isn't substantial enough to change the country of origin. Because it started as a t-shirt and ended as a t-shirt. 

Where as, if you import fabric from China, and have American workers cut that fabric into patterns, and sew it into a t-shirt, and then print a design on that t-shirt, it would be considered substantial transformation. It started as fabric and was turned into an entirely different product.

Of course, I could be completely wrong.

[recped]

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@ilikehockeyjerseys wrote:

Of course, I could be completely wrong.

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You are completely correct!

@sin-n-dex 

To qualify as a Canadian product there are rules, one of the rules is that at least 51% of the Inputs must be Canadian, a Made In China T-shirt with a printed design done in Canada WILL NOT be sufficient to qualify.

You can try contacting US Customs to get a ruling on this question but I highly doubt you will get a positive result.

[dinomitesales]

AI should always be used as a tool, rather than an absolute - it's always a good idea to fact-check anything given to you by AI services such as ChatGPT. What it does do well at is giving you a starting point that you can use to cross-reference on a known database; they will also give you links to websites where you can confirm the validity of the information itself.

I have no problem getting the full 10-digit HTS code from ChatGPT, you just need to be specific in your query. For example, if I ask it "what is the 10 digit HTS code for books mailed to the United States?" it gives me the following detailed reply which matches the codes given on the Canada Post site:

The Harmonized Tariff Schedule (HTS) code for books imported into the United States is primarily found under Chapter 49, which covers "Printed books, newspapers, pictures and other products of the printing industry." The specific 10-digit HTS code depends on the type and characteristics of the book. Here are some common classifications:

• General Printed Books:

  • HTS Code: 4901.99.00.65
  • Description: Printed books, brochures, and similar printed matter, not in single sheets; other; other; other; other; other; valued $5 or more each.

• Textbooks:

  • HTS Code: 4901.99.00.10
  • Description: Printed books, brochures, and similar printed matter, not in single sheets; other; other; textbooks.

• Children's Picture, Drawing, or Coloring Books:

  • HTS Code: 4903.00.00.00
  • Description: Children's picture, drawing, or coloring books.

• Religious Books:

  • HTS Code: 4901.99.00.40
  • Description: Printed books, brochures, and similar printed matter, not in single sheets; other; other; other; Bibles, testaments, prayer books, and other religious books.

• Technical, Scientific, and Professional Books:

  • HTS Code: 4901.99.00.50
  • Description: Printed books, brochures, and similar printed matter, not in single sheets; other; other; other; technical, scientific, and professional books.

For a comprehensive list and to determine the most accurate classification for your specific books, you can consult the Harmonized Tariff Schedule directly.

hts.usitc.gov

[sin-n-dex]

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@recped wrote:

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@ilikehockeyjerseys wrote:

Of course, I could be completely wrong.

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You are completely correct!

@sin-n-dex 

To qualify as a Canadian product there are rules, one of the rules is that at least 51% of the Inputs must be Canadian, a Made In China T-shirt with a printed design done in Canada WILL NOT be sufficient to qualify.

You can try contacting US Customs to get a ruling on this question but I highly doubt you will get a positive result.

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The t-shirt was posted in a different thread, Customs opened a package (that I presume said was from Canada) and it was a tshirt made in China. We theorized the tshirt had screen printing making it a Canadian product.

I guess that means the stuff I make would qualify as Canadian goods (transforming fabric into handbags, turning beads into jewellery).

I found a consignment shop that is nuts about the fact my jewellery and purses were made in Canada and wants to have them... if there are tariffs on Canadian goods, looks like I can still sell these goods in Canada.

C.

[ilikehockeyjerseys]

Can someone answer this in the simplest terms possible.

As of today, can I send a made in China item (Chinese country of origin) with just the HTS code via traditional carriers that use a CN22 form (Canada Post, UPS, Fedex, etc - not Stallion or Chit Chats)? 

I know there were issues with Stallion and Chit Chats, but they were clearing them. 

[fh991586]

Who uses ChitChats for lettermail? And it states on their page it's about China & Hong Kong, not Canada. I'd need a quote from a USA official website regarding lettermail to believe it, not what a private company puts up without supportive argument...

Q: Does this change apply to lettermail as well?

A: Yes, the same rules of COO and HTS codes (if from China and Hong Kong) apply for lettermail.

[dinomitesales]

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@ilikehockeyjerseys wrote:

Can someone answer this in the simplest terms possible.

As of today, can I send a made in China item (Chinese country of origin) with just the HTS code via traditional carriers that use a CN22 form (Canada Post, UPS, Fedex, etc - not Stallion or Chit Chats)? 

I know there were issues with Stallion and Chit Chats, but they were clearing them. 

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Yes.