From Tweet to Tariff: How Customs Changes are Actually Made

Twitter is often cited as a source for updates about regulatory changes in the U.S.-China trade war, but it should come as no surprise that Twitter is not actually an official medium for tariff communications. In reality, for any changes to the current Harmonized Tariff Schedule (HTS) and related duty rates to take effect, an official process must be executed.

So, how does an initial tweet become an enacted tariff?

1. The President issues a formal Proclamation

President Trump first needs to issue a Presidential Proclamation, a dated and numbered letter signed by the president. President Trump issued 147 proclamations in 2018, and 61 so far in 2019 as of May.

2. The Proclamation is published in the Federal Register

The Presidential Proclamation is then sent to the Administrative Committee of the Federal Register, a department under the legislative branch of government. This department holds the official journal of all actions taken. The Proclamation is then assigned a date and a Federal Register number and published in the next daily issue.

3. U.S. Customs and Border Protection (CBP) sends an update message

Once the Proclamation has been published in the Federal Register, U.S. Customs and Border Protection (CBP) will send a Cargo Systems Messaging Service (CSMS) message to their trade partners, and others signed up for their email notifications. This message states that updates have been made to the CBP tariff database and that customs brokers should query this new data to update their brokerage entry filing software.

4. Brokers update their filing software

Brokers must update the HTS database in their software before they can file entries with the new HTS and duty rates.

TL;DR

• Customs changes move through a defined process before they apply to your entries.
• Knowing the process tells you how much lead time you actually have.
• Track the official publication, because that is the point at which the rule becomes operative.

Stages of a customs change and what each means for importers

Stage	What it means practically
Proposal or notice	Direction of travel only; no new obligation yet
Comment or consultation period	An opportunity to check product scope and raise questions
Final publication	Confirm scope, effective date and transition arrangements in detail
Operative date	Obligations apply from this point for covered entries
Implementation	Broker instructions, system and documentation updates

Follow the process: a proposal, a comment period and a final publication are different stages. Only the operative stage creates an obligation, so track where a change actually sits.

Frequently asked questions

How do customs changes actually take effect?

Through a defined sequence of proposal, consultation and final publication. The obligation generally begins at the operative date stated in the final publication.

How much notice will I get before a customs change applies?

That depends on the process and any transition arrangements. Track the official publication to see the stated effective date rather than relying on commentary.

What should I do when a customs change is published?

Confirm the product scope and effective date, brief your customs broker, and update your documentation and systems before the operative date.