Skechers USA, Inc.
225 S. Sepulveda Blvd.
Manhattan Beach, CA 90266
RE: The tariff classification of composition leather from China.
Dear Mr. Watts:
In your letter dated January 19, 2018, you requested a tariff classification ruling. Samples were submitted with your ruling request and were forwarded to the Customs and Border Protection Laboratory for analysis. This analysis has been completed.
The merchandise under consideration is referred to as “Recycled Leather”. The sample consists of three layers. It is imported in rolls of 30 yard lengths and 55 inches wide. From the information you provided, you state the “Recycled Leather” is used in the manufacture of the external surface area of the upper of footwear.
Our Customs Laboratory has determined that the article is composed of a polyurethane coating in thickness of .4 millimeter. The middle layer is composed of a nonwoven fabric layer of nylon and polyester fibers. The bottom layer consists of composition leather.
From the information provided, you state that the composition leather layer contains leather fibers, which are used to strengthen and help avoid tearing of the “Recycled Leather” during the lasting stage of footwear manufacturing.
Composition leather covers only composition leather with a basis of leather or leather fibers. It does not apply to imitation leathers based on plastics, rubber, paper, paperboard or coated textile fabrics. The item described above has a basis of leather fibers.
The applicable subheading for the “Recycled Leather” will be 4115.10.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Composition leather with a basis of leather or leather fiber, in slabs, sheets or strip, whether or not in rolls; parings and other waste of
leather or of composition leather, not suitable for the manufacture of leather articles; leather, dust, powder and flour: Composition leather with a basis of leather or leather fiber, in slabs, sheets or strip, whether or not in rolls.” The general rate of duty will be Free.
Effective July 6, 2018, the Office of the United States Trade Representative (USTR) imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS. The USTR imposed additional tariffs, effective August 23, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(d), HTSUS. Subsequently, the USTR imposed further tariffs, effective September 24, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(f) and U.S. Note 20(g), HTSUS. For additional information, please see the relevant Federal Register notices dated June 20, 2018 (83 F.R. 28710), August 16, 2018 (83 F.R. 40823), and September 21, 2018 (83 F.R. 47974). Products of China that are provided for in subheading 9903.88.01, 9903.88.02, 9903.88.03, or 9903.88.04 and classified in one of the subheadings enumerated in U.S. Note 20(b), U.S. Note 20(d), U.S. Note 20(f) or U.S. Note 20(g) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by the aforementioned Chapter 99 subheadings.
Products of China classified under subheading 4115.10.0000, HTSUS, unless specifically excluded, are subject to the additional 10 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 4115.10.0000, HTSUS, listed above.
The tariff is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Notice cited above and the applicable Chapter 99 subheading.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at https://hts.usitc.gov/current.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Elena Pietron at firstname.lastname@example.org.
Steven A. Mack
National Commodity Specialist Division