Harmonized Tariff Schedule

CBP posted the public comments filed with the agency in response to a recent proposed test to determine the tariff classification of footwear with soles of textile material. CBP released its proposed test method administering Harmonized Tariff Schedule Chapter 64, additional note 5 in the March 27 Customs Bulletin (see 13032615). The comments were posted on the agency's Freedom of Information Act library in the "Significant Records of Interest" section. CBP said it is currently reviewing the comments and "plans to prepare a decision to establish how CBP will administer Note 5" and will publish its decision in the Customs Bulletin. All of the comments are (here).

The U.S. Court of Appeals for the Federal Circuit upheld the dismissal of a test case on gender and age discrimination by Harmonized Tariff Schedule provisions for footwear and apparel. Rack Room, Skiz Imports, and Forever 21 argued that different duty rates for men’s, women’s and children’s footwear and apparel violate the equal protection clause of the constitution. According to the appeals court ruling, the outcome of 171 lawsuits depended on the result of this test case. As had the Court of International Trade in 2012, CAFC decided the companies failed to demonstrate Congressional intent to discriminate, and so failed to prove a violation of the equal protection clause.

The Commerce Department issued a Federal Register notice on its recently initiated antidumping investigations on welded stainless pressure pipe from Malaysia, Thailand, and Vietnam (A-557-815, A-549-830, A-552-816). The agency will determine whether imports of the subject merchandise are being, or are likely to be, sold in the U.S. at less than fair value. A Commerce Department fact sheet said domestic petitioners alleged AD rates of 22.67 to 22.73 percent for Malaysian exporters, 23.77 to 24.01 percent for Thai companies, and 89.4 to 90.8 percent for Vietnamese exporters (see 13060702).

With ongoing negotiations for the Transatlantic Trade and Investment Partnership (TTIP) between the U.S. and the European Union (EU), multiple business federations and lobbying groups have stepped forward to push new efforts towards trade facilitation.

CBP's proposed method of interpretation of a new test method for classifying textile materials in outer soles is raising some concerns with the Rubber and Plastic Footwear Manufacturers Association (RPFMA), it said in comments to the agency. CBP's planned standard for determining the classification of footwear with textile outer soles is "wholly unrealistic and ignores the substance and clear direction of [Harmonized Tariff Schedule Chapter 64, additional note 5]," said the trade group. CBP recently proposed using a modified International Organization for Standardization (ISO) test method for abrasion resistance on outer soles, known as ISO 20871.

CBP finalized its interim rule amending its regulations to implement the customs-related provisions of the U.S.-Korea Free Trade Agreement (UKFTA). The final rule makes two technical corrections to the interim provisions. CBP responded to two comments that were submitted to the agency about the rule. The agency issued the interim rule last year (see 12031609), after Presidential Proclamation 8783, published on March 9, 2012, modified the Harmonized Tariff Schedule to implement the UKFTA (see 12030929).

While accepting the general outline of CBP’s proposed test method to determine classification for footwear with textile soles, the Footwear Distributors and Retailers of America (FDRA) said the agency needs to include more detail in its final version. The group submitted its comments in response to CBP’s proposed test method for administering Harmonized Tariff Schedule Chapter 64, additional note 5. “The test method and the manner in which the test results will be used must be described in a great deal more detail in order to ensure uniformity and consistent results and to avoid unnecessary testing,” FDRA said.

The Commerce Department issued a Federal Register notice on its recently initiated antidumping investigations on prestressed concrete steel rail tie wire from Mexico, China, and Thailand (A-201-843, A-570-990, A-549-829). The agency will determine whether imports of the subject merchandise are being, or are likely to be, sold in the U.S. at less than fair value. A Commerce Department fact sheet said domestic petitioners alleged AD rates of 67.43 percent for Chinese exporters, 159.44 percent for Mexican exporters, and 53.72 percent for Thai companies (see 13051430).

The Court of International Trade ruled that laser sintering machines that use an additive manufacturing process to build metal and plastic objects are correctly classified under residual provisions for machinery, instead of as machine tools or laser welders. Both EOS and the government argued that technology in each category has advanced beyond what the writers of the Harmonized Tariff Schedule provisions for those products could have anticipated. But CIT, turning to common definitions of each, said neither category could be stretched to include the laser sintering machines.

The Committee for the Implementation of Textile Agreements issued interim procedures it will follow in implementing short supply provisions of the U.S.-Panama Trade Promotion Agreement (PATPA). Under those provisions, CITA will consider requests to modify the list of fibers, yarns, or fabrics not available in commercial quantities in a timely manner in the U.S. A textile or apparel good imported into the U.S. containing such listed fibers, yarns, or fabrics will be treated as if it is an originating good for purposes of PATPA rules of origin, regardless of the actual origin of those inputs.