Boots without fasteners, designed to be pulled on with the hands, are “footwear of the slip-on type” for tariff classification purposes, said the Court of Appeals for the Federal Circuit in a May 8 decision. CAFC affirmed the Court of International Trade’s April 2012 ruling against Deckers Outdoor Corporation, which had argued its "Uggs" boots should instead be classified in a basket provision because “slip-on” refers to shoes not extending above the ankle.
Harmonized Tariff Schedule
The Harmonized Tariff Schedule (HTS) is a reference manual that provides duty rates for almost every item that exists. It is a system of classifying and taxing all goods imported into the United States. The HTS is based on the international Harmonized System, which is a global standard for naming and describing trade products, and consists of a hierarchical structure that assigns a specific code and rate to each type of merchandise for duty, quota, and statistical purposes. The HTS was made effective on January 1, 1989, replacing the former Tariff Schedules of the United States. It is maintained by the U.S. International Trade Commission, but the Customs and Border Protection of the Department of Homeland Security is responsible for interpreting and enforcing the HTS.
A blended syrup consisting of mostly Brazilian cane sugar with some U.S. corn syrup does not undergo a substantial transformation, because it remains a sugar syrup, said CBP in a classification and country of origin ruling. Therefore, the country of origin of the product is Brazil, it said.
The U.S. Trade Representative’s office is seeking public comments on Japan’s potential entry into the Trans-Pacific Partnership agreement, including on the reduction and elimination of tariffs or non-tariff barriers for articles from Japan listed in the Harmonized Tariff Schedule. The comments -- along with those at a July public hearing -- will help USTR develop its negotiating objectives with Japan, both in the TPP and in bilateral talks.
Knit “shelf bra camisoles,” which combine the body covering features of a camisole with the support features of a bra, are classifiable in the Harmonized Tariff Schedule’s residual provision for knit apparel, rather than as bras or tank tops, ruled the Court of International Trade in two May 1 decisions. The two cases, Victoria’s Secret Direct v. U.S. (here) and Lerner New York v. U.S. (here), shared such similar products and issues that the court decided to try them together. Both companies were represented by the same attorneys, some testimony during trial applied to both cases, and the post-trial briefs for each company were identical.
The International Trade Commission released April 29 the public version of its confidential report on the economic effects of designating five new products eligible for duty-free treatment under the Generalized System of Preferences, as well as providing a competitive need limitation waiver for calcium-silicon from Brazil. Because the report is confidential, the advice ITC is providing the U.S. Trade Representative is redacted. The confidential version of the report was submitted to the USTR April 8, the ITC said. Products being considered for addition to GSP duty-free eligibility in this 2012 review are classified in the following Harmonized Tariff Schedule subheadings:
Deckers Corporation appealed the Court of International Trade’s April 12 dismissal of its challenge to CBP’s classification of its Teva sports sandals. Deckers had argued they should be classified in the Harmonized Tariff Schedule (HTS) as sports footwear, but CBP instead found them to be footwear with open toes or open heels. The sandals were made for running and training, and the openings don’t detract from that function, Deckers had argued. CIT, though sympathetic, said it couldn’t ignore the Court of Appeals for the Federal Circuit’s ruling on similar footwear from Deckers in a test case the company had itself requested.
A group of 29 House lawmakers introduced a new Affordable Footwear Act April 24, proposing to amend the Harmonized Tariff Schedule to reduce or eliminate duties on various kinds of shoes.
Davis Wire Corporation and Insteel Wire Products filed petitions April 23 with the Commerce Department and International Trade Commission requesting antidumping duties be imposed on prestressed concrete steel rail tie wire from China, Mexico, and Thailand (A-570-989, A-201-843, A-549-829). According to the two companies, imports of the product have increased their U.S. market share by undercutting domestic prices, which in turn has eroded the finances of U.S. producers. Domestic industry is both materially injured and threatened by injury from dumped imports, they said.
The International Trade Administration is seeking comment on any subsidies, including stumpage subsidies, provided by certain countries exporting softwood lumber or softwood lumber products to the U.S. during the period July 1 through Dec. 31, 2012. Comments are due by May 28.
The Commerce Department issued a Federal Register notice on its recently initiated antidumping investigation on diffusion-annealed, nickel-plated flat-rolled steel products from Japan (A-588-869). The agency will determine whether imports of silica bricks and shapes from China 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 56.5 to 77.7 percent (see 13041801).