2nd Set of HTS Changes for Rubber-Soled Footwear Sent to Congress
In mid February 2011, the International Trade Commission sent a finalized set of recommended HTS changes to the U.S. Trade Representative under Investigation 1205-8 (Addendum), for the purpose of modifying the classification of a second group of Chapter 64 footwear that features an outer sole of rubber or plastic with an added textile layer. This finalized set was sent to Congress for a 60 legislative-day layover period on March 2, 2011, according to USTR sources.
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(The ITC’s initial set of recommendations for this second group of footwear was posted on its website on December 29, 2010 for comment. See ITT’s Online Archives or 01/04/11 news, 11010427, for BP summary.)
1st Group of Footwear HTS Changes Sent to Congress Earlier
A first group of recommended Harmonized Tariff Schedule changes for similar footwear that features an outer sole of rubber or plastic with an added textile layer, was issued by the ITC in August 2010. It then went to USTR, and on to Congress in mid September 2010 for a 60 legislative-day layover period.
Purpose of Both Groups of Changes Is to Preserve Existing Duty Treatment
The purpose of both groups of recommended HTS changes is to preserve the existing duty rates for the affected footwear once their classification changes from HTS 6405 to HTS 6402 or 6404 -- which will occur when a new Additional Note 5 is added to Chapter 64 by Proclamation.
The ITC has stated that this new note, which will require textiles in footwear outer soles to be disregarded if not durable, is needed due to certain World Customs Organization (WCO) Classification Opinions, and to provide a better basis for applying Note 4(b) to Chapter 64.
The new duty rates will try to ensure that the new note is revenue neutral (i.e., does not raise the duty rate of the affected footwear).
Both Groups of Changes Expected to be Implemented at Same Time
After the 60-legislative day layover period before Congress ends for the second group of HTS changes, government sources expect both groups of changes, as well as the new chapter note, to be implemented at the same time by proclamation, and to perhaps take effect in the July 1, 2011 timeframe.
(See ITT’s Online Archives or 01/04/11 news, 11010427, for BP summary of initial set of recommendations for this second group of footwear (11 tariff numbers listed.)
See ITT’s Online Archives or 12/13/10 news, 10121322, for BP summary of the recommended tariff changes for the first group of footwear (14 tariff numbers listed).