ITC Begins Investigation on Proposed HTS Changes for Certain Rubber-Soled Footwear
The International Trade Commission has instituted an investigation and requests comments on proposed Harmonized Tariff Schedule amendments to modify the classification of certain footwear in Chapter 64, in order to take into account various World Customs Organization decisions.
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Footwear with Rubber/Plastic Outer Soles with Added Textile Layer
This investigation was requested by the Treasury Department, for the purpose of submitting recommendations to the President regarding changes to HTS Chapter 64 for subject footwear -- e.g., footwear featuring outer soles of rubber or plastic to which a layer of textile material has been added.
Comments on the proposed changes are due by May 14, 2010.
New Chapter 64 Note and Tariff Lines Proposed
The Treasury Department is proposing a new Additional U.S. Note and changes in various U.S. tariff rate lines at the 8-digit level to take into account the decisions of the Harmonized System Committee of the World Customs Organization on the Harmonized System (HS) classification of certain footwear featuring outer soles of rubber or plastic to which a layer of textile material has been added. The new U.S. tariff lines are designed to ensure substantial rate nuetrality.
Specifically, Treasury requests that the following AUSN be inserted in HTS Chapter 64 which would state:
5. For purposes of determining the constituent material of the outer sole pursuant to Note 4(b) to this Chapter, no account shall be taken of textile materials which do not possess the characteristics usually required for normal use of an outer sole, including durability and strength.
(Note 4(b) provides guidance on how to determine the constituent material of the outer sole and states that subject to Note 3 (which defines the terms rubber, plastics, and leather for purposes of HTS Chapter 64), the constituent material of the outer sole is the material having the greatest surface area in contact with the ground, no account being taken of accessories or reinforcements such as spikes, bars, nails, protectors or similar attachments.)
Certain imported footwear falling under the scope of the proposed AUSN 5 would change from 6405.20.30, 6405.20.90, and 6405.90.90 to other subheadings in Chapter 64.
ITC to Issue Preliminary and Final Reports, Comments Requested
The ITC will prepare and make available a preliminary report containing proposed recommendations by May 28, 2010, which will be available at http://www.usitc.gov/tariff_affairs/modifications_hts.htm. Comments on the preliminary report are due by June 25, 2010.
The ITC will then prepare its final report and recommendations to submit to the President, which it will issue no later than July 12, 2010.
ITC contact -- Donnette Rimmer (202) 205-0663
ITC notice on new investigation“Certain Footwear: Recommendations for Modifying the Harmonized Tariff Schedule of the United States,”(Inv. No. 1205-8, FR Pub 04/13/10) available at http://edocket.access.gpo.gov/2010/pdf/2010-8360.pdf
Treasury request letter (dated 01/15/10) available by emailing BP at documents@brokerpower.com
(Summary corrected on July 16, 2010 to state that the tariff line changes are intended to ensure substantial rate neutrality, rather than result in lower duty rates.)