To Modify the Harmonized Tariff Schedule of the United States, To Adjust Rules of Origin Under the United States-Australia Free Trade Agreement and for Other Purposes

Impact dates

1. Date TBD

   Respective dates specified in each section of Annex II for duty reduction modifications

2. Feb 1, 2007

   HTS modifications effective (later of February 1, 2007 or 30 days after Federal Register publication)

Key directives

• Modify HTS as set forth in Annex I of USITC Publication 3898
• Continue staged duty reductions for NAFTA originating goods per section F of Annex II
• Continue staged duty reductions for Uruguay Round/Schedule XX goods per section H of Annex II
• Continue staged duty reductions for Jordan FTA originating goods per section D of Annex II
• Continue staged duty reductions for Singapore FTA originating goods per section J of Annex II
• Continue staged duty reductions for Chile FTA originating goods per sections C, K, and L of Annex II
• Continue staged duty reductions for Australia FTA originating goods per section A of Annex II
• Modify rules of origin under Australia FTA per Annex III of Publication 3898
• Continue staged duty reductions for Morocco FTA originating goods per section E of Annex II
• Continue staged duty reductions for CAFTA-DR originating goods per section G of Annex II
• Continue staged duty reductions for Bahrain FTA originating goods per section B of Annex II
• Supersede inconsistent provisions of previous proclamations and Executive Orders

Timeline

Risks & tensions

• Multiple overlapping FTA regimes create complexity in customs administration
• Technical conforming changes may create temporary classification uncertainty for importers
• Effective date depends on Federal Register publication timing, creating slight uncertainty