2022 Tariff Schedule Will Contain Smartphones, Drones, and More

Starting in 2007 with the rollout of the first iPhone, smartphones have become increasingly integrated into the lives of the global population. A person can use a smartphone to communicate with the people they love, and to troll the people they don’t. They can find love by swiping right, order food from their favorite restaurant, and entertain themselves with games or streaming options. Current estimates place a smartphone in the hands of about 80% of the world’s population, with over 400 billion USD in global sales annually.

And now 15 years after these multifunctional, somewhat tricky to classify devices became must have, the smartphone will finally get its own HTS subheading.

Every 5 years, the WCO (World Customs Organization), reviews the Harmonized coding System (HS), with the goal of staying current with technology and emerging global issues. The WCO is made up of customs representatives from 183 countries, with the main objective of enhancing the efficiency and effectiveness of member customs administrations.

 The 2022 changes include new headings, subheadings, descriptions, and notes. The changes will address specific items that have been a big part of the global trade environment for many years. In addition to creating a subheading for smartphones, the following items are also addressed: unmanned aerial vehicles (drones), certain nicotine-based products (vapes), heavy-duty electric vehicles, 3D printers, rapid diagnostic kits, electronic waste, and more. 

On January 1, 2022, the newest edition of the Harmonized System will go into effect. Importers should act now to update their HS classification codes, or risk shipments being delayed by Customs, and potentially incurring costly storage fees.

How Allyn Can Help

At Allyn we have the experience, systems, and best practices in place to help guide clients through all regulatory changes. Allyn can help ensure that HS classifications are correct and updated in a timely fashion. Most companies could benefit from a HS classification review. If interested, please contact us at trade@allynintl.com.

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