More than One 98-99 HTS Item Classification

This Optional Feature, when enabled, allows you to identify penalty and exemption rates modeled as part of the harmonized tariff. By enabling GTM to support multiple chapter 98-99 HS codes, you can add special program codes, penalty codes, and penalty exemption codes to your items allowing you to easily model your section 301 and section 232 penalty tariff rates.

When you opt in to this feature, you can model multiple chapter 98-99 HS codes and add a product classification purpose which tells you what the code is used for. In addition to logic changes to support multiple chapter 98-99 codes, the following enhancements have been made:

• New Product Classification Purpose power data introduced
• Add Product Classification Purpose to various business objects including item classification and product classification template
• Support for Product Classification Purpose in item-based actions and processes within Process Management

Product Classification Purpose Power Data

Product Classification Purpose has been added to Master Data > Power Data > Product Classification > Product Classification Purpose. You can model the usage of an HS tariff code on various GTM objects and assign it when classifying an item. GTM ships with 4 values:

• GENERAL - used to model your product's character and general chapter 1-97 HS tariff codes.

• PENALTY - used to model your penalty codes including Section 301 and Section 232 penalty tariff rates.

• EXEMPTION - used to model exception tariff codes for your penalty rates. For example, if there is a penalty rate that applies to your products but you have obtained an exclusion, you can specify both classification codes on your item.

• SPECIAL PROGRAM - used to model other special program rates and provides the actual duty rate based on a usage provision.

Purpose on Item Classification

A Purpose drop-down list has been added to the item classification which enables you to define the type of HS code you are defining.

Once you assign your classification data to your item, you can see all of your classification codes for a particular item on the Item > Trade Details table. In this example, you can see a general rate, a special program rate, a penalty and a penalty exemption.

Purpose on Product Classification Template

The Product Classification Template has been enhanced to support the Purpose drop-down list and the assignment of multiple chapter 98-99 HS classification codes.

Apply Product Classification Template Action

The logic of the Apply Product Classification Template action has been updated to support the assignment of multiple chapter 98-99 codes along with the corresponding Purpose. When you trigger the action on an item, you need to specify the Product Classification Template and click Apply. GTM assigns all of the classification codes, and the purpose, including the chapter 1-97 general code and the chapter 98-99 codes specified on the template.

Apply Item Template Action

The logic of the Apply Item Template action has been updated to support the assignment of multiple chapter 98-99 codes along with the corresponding Purpose. When you trigger the action on an item, you need to specify the Item Template you want to use. The Override checkbox enables you to override information if it already exists on the item. Specifically:

• If the Override checkbox is marked:
  • For chapters 01-97 HS codes, the item template will override existing HS classification codes
  • For chapters 98-99 HS codes, the existing classifications will be removed and new classification codes will be added from the item template

• If the Override checkbox is not marked:
  • For chapters 01-97 HS codes, the classification codes from the item template will be added if one does not exist on the item
  • For chapters 98-99, the classification codes from the item template will be added

When you click Apply, GTM assigns the information specified on the item template including the chapter 1-97 general code and the chapter 98-99 codes on the template.

Assign Item Classification Action and Process Management

The Assign Item Classification action and Process within Classification > Process Management have been enhanced to include the Purpose field. When assigning classification data to your item, you can add the Purpose and assign it along with other information.

Classify Item Action

The Classify Item action has been enhanced to include the Purpose field. When classifying an item, you can add the Purpose and assign it along with other information.

Business Benefit

This enhancement allows for complying with more complex regulatory and duty management scenarios, saving users time and effort.

Steps to Enable

• Set the Optional Feature called 'More than One 98-99 HTS Item Classification' to TRUE/enabled.
  • The Optional Feature UI is only available to DBA.ADMIN.

Tips And Considerations

You can create business specific purposes, enabling you to see the relationship between a penalty and an exemption. For example, you can create the following Product Classification Purposes:

• PENALTY_301
• EXEMPTION_301

When you use these purposes on the item classification to identify the use of a classification code, you can see which classification code is the 301 penalty and which is the exemption for the 301 penalty.