The following is a brief description of classification decisions recently published by CBP.
The Customs Bulletin for December 9, 2020 includes HQ H285615 (December 9, 2020), which revokes NY N279073 (September 30, 2016). The shoe, whose classification is at issue, has a textile upper and a R/P outer sole. The NY ruling describes the shoe as a slip-on that does not have a separately attached tongue or an FLB. The shoe has a leather overlay that incorporates the eye stays and threaded laces. The importer described the shoe as being designed as a running shoe. NY found classification in subheading 6404.19.39 (37.5%)(4A).
Although NY described the shoe as a slip-on, the Headquarters Office disagrees and indicates that the laces are functional in that they are tightened after the wearer puts on the shoe and must be untied to put on or take off the shoe because it does not easily slip on and off when the laces are tightened. This analysis leads the Headquarters Office to find classification as athletic in subheading 6404.11.90 (20%)(4A).
A more complete review of the ruling is found in the November Report. The Customs Bulletin for December 16, 2020 includes HQ H301907 (November 25, 2020) revoking NY N298995 (August 2, 2018). The New York ruling classified a woman’s sneaker in subheading 6404.11.90 (20%)(4A).
CBP agrees with the importer’s claim that the shoe was not "athletic" because of the presence of a “pointed toe”, which could make running long distances uncomfortable. CBP fixes classification in 6404.90.90 (9%)(4A).
The previous rulings do not appear in CROSS, last updated December 30, 2020.
NY N316015 (December 4, 2020) addresses the classification of a woman’s, open toe/closed heel, casual shoe that has a separately attached, two-inch heel. The upper and sole are R/P. The sole has a textile overlay. Classification lies in 6402.99.31 (6%)(3). The presence of the textile overlay on the sole is ignored and has no impact on classification.
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Congress was unable to reach an agreement to extend the Miscellaneous Tariff Bill (MTB) at the end of the year. As a result, all of the MTBs, including the 65 current footwear MTBs, lapsed on December 31, 2020. The MTB holdup is due in part to Rep. Adriano Espaillat's (D-NY) objections to many, but not all, of the footwear MTBs. Under the process, any MTB request is thrown out if a Member of Congress objects to it. FDRA is working with Rep. Espaillat's office and the House Ways & Means Committee to try to find a path forward, so that the bill can move quickly in 2021 with as many footwear MTBs as possible. |
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Congress was also unable to reach an agreement to extend the Generalized System of Preferences (GSP), and the program expired at the end of the year. Until further notice, GSP eligible goods entered or withdrawn from warehouse were subject to duty, effective, January 1, 2021, 12:00 am.
CBP allows and encourages importers to continue to flag GSP eligible importations with Special Program Indicator “A” after January 1, 2021. Although, duty must be paid, CBP has programming in place that, in the event that GSP is renewed with a retroactive refund clause, will allow an automated duty refund process.
CBP will continue to allow post-importation GSP claims made via post summary correction (PSC) and protest (19 USC 1514, 19 CFR 174) after the expiration of GSP, for importations made while GSP was still in effect. CSMS #45244051 (December 22, 2020).
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The following is a brief description of decision recently published by CBP.
HQ H315375 (December 18, 2020) addresses the eligibility of disposable medical face masks under the USMCA. The masks which are 7”x 3.75” have advanced nanofiber filtration, latex-free three-ply construction, an adjustable aluminum nose piece, and soft ear loops. They are classified in subheading 6307.90.98.
The fabrics that make up the three-ply construction originate in Canada, India, or the United States. The nose wire and the ear loop material originate in China. All cutting and assembly take place in Canada.
Since the masks contain non-originating materials, they are not considered goods wholly obtained or produced entirely in a USMCA country. In that case, the applicable rule of origin applies only to the materials that impart the essential character to the article. The rule for articles classified in 6307.90.98 is a change in classification from any other chapter, except from headings 5106 through 5113, 5204 through 5212, 5310 through 5311, chapters 54 through 55 or headings 5801 through 5802 or 6001 through 6006, provided that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the USMCA countries.
The essential character of the masks is imparted by the fabrics that make up the three-ply construction. These fabrics are classified in subheading 5603.12, meaning that the tariff shift rule has been satisfied and the masks qualify for duty-free treatment under the USMCA.
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ORIGIN MARKING – WEST BANK |
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CBP has announced changes in the country of origin marking requirements for products manufactured in the West Bank and Gaza. 85 Federal Register 83984 (December 23, 2020).
Goods originating in the area of the West Bank controlled by Israel are to be marked as made in Israel. Products of the West Bank made in the area controlled by the Palestinian Authority are to be marked made in the West Bank. Similarly, products originating in Gaza are to be marked as such. Goods from these areas may not be marked in conjunctive form, such as “West Bank/Gaza”.
These changes are effective for products imported after March 23, 2020.
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If you have not filed a summons covering List 4, FDRA believes you must do so before the end of February to take advantage of a positive decision in the existing litigation. If you are interested in pursuing this issue, you should consult counsel.
There has been no significant progress in the litigation as the parties continue to spar concerning procedure.
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There was a recall of a footwear item in December. A toddler’s boot was recalled because rivets used to attach handles to the boot can detach, posing a choking hazard to children.
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The Customs Report is a newsletter of customs legal, administrative and other developments affecting importers of footwear prepared as a service for FDRA members and other interested parties. Matters reported on or summarized herein may not be construed as legal advice on specific situations.
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