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, trade transaction lines and declaration lines. This enhancement enables you to easily model your section 301 and 232 penalty tariff rates across GTM objects.

NOTE: The 'More Than One 98-99 HTS Item Classification' optional feature was introduced in 24A to support multiple chapter 98-99 HS codes on the item. In 24B, this optional feature has been extended to include trade transaction line and declaration line.

When you opt in to this feature, you can model multiple chapter 98-99 HS codes on your item, transaction line or declaration line and add a product classification purpose which tells you the use of the code. In addition to logic changes to support multiple chapter 98-99 codes, the following enhancements have been made:

  • A Constraint Set with a Constraint Set Type = TRANSACTION LINE - PRODUCT CLASSIFICATION LOOKUP is introduced
  • The Constraint Set field is added to the existing Service Preference with a Service = Look Up Product Classification
  • A new Purpose field is added to the Product Classification grid on the transaction line and the declaration line

Constraint Set

A new Constraint Set with a Constraint Set Type = TRANSACTION LINE - PRODUCT CLASSIFICATION LOOKUP is introduced. This constraint set is used to determine which HS codes should be copied from item classifications on the item to the line. GTM matches data such as reference numbers, remarks and flex field attributes on the item classification and the line. If there is a match, the classification data is copied to the line. In this example, the transaction line reference number with a qualifier = ITEM NUMBER is matched to the item classification reference number with a qualifier = INTERNAL NUMBER. When a match occurs, the classification data is copied to the line.

Constraint Set for Transaction Line - Product Classification Lookup

Constraint Set for Product Classification Lookup on Transaction Line

Service Preference

A Constraint Set field is added to the Service Preference. When you select a Service = Look Up Product Classification and configure the details, you can specify the Constraint Set ID which contains the matching criteria. If the constraint set is not specified on the service preference, all item classification records on the item associated with the transaction line are considered. In this example, you are specifying the Constraint Set ID = LOOKUP PRODUCT CLASSIFICATION which you previously created.

Service Preference with Constraint Set ID

Service Preference with Constraint Set ID

Trade Transaction Line/Declaration Line

You can add product classification data to the transaction line/declaration line manually or via the Look Up Product Classification action or agent action. When you trigger the action, GTM uses the details in service preference to determine which item classification data on the item to copy to the line. All applicable codes are copied to the line. In addition, a new Purpose field has been introduced on the transaction line/declaration line. This field enables you to model the usage of an HS tariff code such as GENERAL, PENALTY, EXEMPTION, or SPECIAL PROGRAM. If the purpose is identified on the item classification, it will be copied to the line when the action is triggered.

Trade Transaction Line with Multiple Classification Codes

Trade Transaction Line with Multiple Classification Codes

A few things to consider when using the Look Up Product Classification action/agent action:

  • If the constraint set is not specified on the service preference, all item classification records on the item associated with the transaction line are considered.
  • If the Classification Override checkbox is null on the service preference configuration or on the action/agent action and the criteria on the constraint set is met:
    • For Chapter 1-97 classification codes, classification data is copied from the item to the transaction line if a classification code does not exist on the transaction line.
    • For Chapter 98-99 classification codes, for each Purpose, classification data is copied from the item to the line if a classification code does not exist on the transaction line.
  • If the Classification Override checkbox is marked on the service preference configuration or on the action/agent action and the criteria on the constraint set is met:
    • For Chapter 1-97 classification codes:
      • If the Fixed checkbox in the Product Classification grid on the line is marked, the existing classification data on the line will be maintained.
      • If the Fixed checkbox in the Product Classification grid on the line is not marked, classification data is copied from the item to the transaction line. If classification data already exists on the transaction line, it is overridden by the item classification data on the item.
    • For Chapter 98-99 classification codes:
      • If the Fixed checkbox in the Product Classification grid on the line is marked, the existing classification data on the line is maintained.
      • If the Fixed checkbox in the Product Classification grid on the line is not marked, all chapter 98-99 codes are removed and, for each Purpose, classification data is copied from the item to the line.
  • If the item has item classification records without a Purpose defined, they will be copied from the item to the line only if chapter 98-99 codes do not exist on the line.

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

Steps to Enable

If you need to change the Opt In state for this feature:

  •  Go to the Optional Feature UI - Configuration and Administration > Property Management > Optional Features.

NOTE: Only the DBA.ADMIN user can access and use the Optional Features page.

  • Select the More Than One 98-99 HTS Item Classification feature.
  • Run the desired Action for the More Than One 98-99 HTS Item Classification feature -  Opt In or Opt Out.

Tips And Considerations

  • This optional feature is available for both trade transaction lines and declaration lines.
  • If you opt in to this feature, it is recommended that you populate the Purpose field on the item classification and the lines since the purpose field identifies the usage of the classification code. This is particularly important for chapter 98-99 codes.
  • Look Up Product Classification is available as a manual action or agent action from the following objects:
    • Trade Transaction
    • Trade Transaction Line
    • Declaration (Agent Type = GTM SHIPMENT)
    • Declaration Line (Agent Type = GTM SHIPMENT LINE)

Key Resources

  • To review the changes made to the item to support multiple chapter 98-99 HS codes, please refer to the topic 'More Than One 98-99 HTS Item Classification' in the 24A What's New document.