CLA-2-64:OT:RR:NC:N2:247
Mr. David Baker
David Baker, Attorney at Law
266 18th Avenue South
South Saint Paul, MN 55075
RE: The tariff Classification, Country of Origin and Marking of footwear uppers from China
Dear Mr. Baker:
In your letter dated October 27, 2022, you requested a tariff classification ruling on behalf of your client JAB International Inc. You have submitted descriptive literature and three photographs. No sample was submitted with this request.
The photograph submitted shows a man’s, above-the-ankle, full grain leather, lace-up, footwear upper. The work boot styled upper is shaped by lasting and sewing and includes a fiberboard insole and a rubber midsole. A nylon and cotton lining are also sewn into the inside of upper. A submitted picture shows a textile label depicting an American flag sewn-in on the lateral side of the foot portion. The upper will come with either a soft toe or a composite protective toe. A nickel sized hole is cut through the midsole/insole in the heel section of the upper. Shaped footwear uppers having holes approximating the size of a nickel or lager at the bottom are not considered “closed” and considered “unformed.” There is no outer sole attached to the upper. It will be sourced from China. Further processing and finishing such as plugging/closing the upper’s bottom and attaching an outer sole, cleaning and packing will be done in the United States.
The applicable subheading for the unformed upper will be 6406.10.6500, Harmonized Tariff Schedule of the United States (HTSUS), which provides for parts of footwear including uppers whether or not attached to soles other than outer soles): Uppers and parts thereof, other than stiffeners: Other: Of leather. The rate of duty will be free.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 6406.10.6500, HTSUS, unless specifically excluded, are subject to an additional 7.5 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.15, in addition to subheading 6406.10.6500, HTSUS, listed above.
The HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china, respectively.
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 World Wide Web at https://hts.usitc.gov/current.
19 CFR §134.1(b), defines “country of origin” as the country of manufacture, production, or growth of any article of foreign origin entering the United States. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the “country of origin” within the meaning of this part. Based on the information submitted, noting the manufacturing processes including shaping and lasting taking place in China, it is of the opinion of this office that the country of origin of the upper is China.
The marking statute, section 304 Tariff Act of 1930, as amended (19 U.S.C. §1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly, and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the United States the English name of the country of origin of the article.
If the imported unformed shoe upper is produced in China and further processed/manufactured in the United States into a finished shoe, it is substantially transformed in the United States pursuant to 19 CFR §134.1(b). As such, per 19 CFR §134.35(a), the U.S. processor is considered the ultimate purchaser of the imported components. As a result of the substantial transformation, the imported upper is excepted from the marking requirements of 19 U.S.C. §1304, per 19 CFR §134.35(a), supra.
Inasmuch as marking requirements of 19 U.S.C. §1304 are applicable only to articles of “foreign origin,” we agree the unformed uppers will be excepted from the marking requirements of 19 U.S.C. §1304 and should be exempt from any country of origin marking requirements. The containers in which the uppers will be shipped, however, should be clearly marked as “Made in China.”
Your proposal to mark the uppers "Made in the US with Globally Sourced Materials," or "Assembled in the US with Globally Sourced Materials" is an issue under the authority of the Federal Trade Commission (FTC). We suggest that you contact the FTC, Division of Enforcement, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580 as to whether the proposed markings satisfy their requirements. Information can also be found at the FTC website www.ftc.gov.
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 Stacey Kalkines at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division