CLA-2-64:OT:RR:NC:N2:247
Brennan E. O’Gorman
Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP
599 Lexington Ave
New York, NY 10022
RE: The tariff classification and country of origin of indoor footwear
Dear Mr. O’Gorman:
In your letter dated April 28, 2025, you requested a tariff classification ruling and country of origin
determination on behalf of your client, R.G. Barry Corporation. The sample upper, outer sole, and completed
shoe, submitted with your request, was examined and is being returned.
The “Clarissa Quilted Velour Clog” (style no. 41239) is a closed toe/open heel indoor shoe. It has a quilted
upper consisting of low-density foam covered with tricot fabric. The insole unit is comprised of memory
foam, high-density foam, and an Ethylene-vinyl acetate heel wedge. The thin rubber/plastic outer sole is
made from thermoplastic rubber (not foamed rubber) with partially embedded non-durable textile material
throughout. The FOB value is stated to be $2.02 per pair.
The applicable subheading for the “Clarissa Quilted Velour Clog” (style no. 41239) will be 6404.19.3760,
Harmonized Tariff Schedule of the United States (HTSUS) which provides for “Footwear with outer soles of
rubber, plastics, leather or composition leather and uppers of textile materials: Footwear with outer soles of
rubber or plastics: Other: Footwear with open toes or open heels; Other: With uppers of textile material other
than vegetable fibers and having outer soles with textile materials having the greatest surface area in contact
with the ground, but not taken into account under the terms of additional U.S. note 5 to this chapter: Other:
For women.” The general rate of duty will be 12.5% ad valorem.
These indoor shoes will be manufactured using open-bottom, "unformed” uppers, insoles, foam, and labels
sourced from China and shipped to Vietnam. In Vietnam the sock label will be sewn to the insole. The care
label will be sewn to the upper. The upper will be sewn to the insole. The foam will be placed into the
outsole. The upper will be sewn to the insole foam and to the outer sole of Chinese or Vietnamese origin
before being packaged for export.
When determining the country of origin for purposes of applying current trade remedies under Section 301
and additional duties, the substantial transformation analysis is applicable. See, e.g., Headquarters Ruling
Letter H301619, dated November 6, 2018. The test for determining whether a substantial transformation will
occur is whether an article emerges from a process with a new name, character, or use different from that
possessed by the article prior to processing. See Texas Instruments Inc. v. United States, 681 F.2d 778
(C.C.P.A. 1982). This determination is based on the totality of the evidence. See National Hand Tool Corp. v.
United States, 16 C.I.T. 308 (1992), aff’d, 989 F.2d 1201 (Fed. Cir. 1993).
Unformed uppers are considered to have undergone a substantial transformation when they have been shaped
by lasting, molding or otherwise, and having closed bottoms. In China, the vamp, lining, foam, and insole
components are cut, sewn together, and shipped to Vietnam. The open-bottomed uppers from China are
considered “unformed” and without the shape of the foot. In Vietnam, they will be sewn to the outer soles of
Chinese or Vietnamese origin. The Chinese components are substantially transformed in Vietnam into
finished footwear, resulting in a new and different article having a distinctive name, character, and use.
Based upon these facts, the country of origin is Vietnam.
Effective April 5, 2025, Executive Orders implemented “Reciprocal Tariffs.” All imported merchandise
must be reported with either the Chapter 99 provision under which the reciprocal tariff applies or one of the
Chapter 99 provisions covering exceptions to the reciprocal tariffs. At this time products from all countries
will be subject to an additional 10 percent ad valorem rate of duty. At the time of entry, you must report the
Chapter 99 heading applicable to your product classification, i.e. 9903.01.25, in addition to subheading
6404.19.3760, HTSUS, listed above.
The tariffs and additional duties cited above are current as of this ruling’s issuance. 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 at https://hts.usitc.gov/.
The holding set forth above applies only to the specific factual situation and merchandise description as
identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations
(CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the
information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and
complete in every material respect. In the event that the facts are modified in any way, or if the goods do not
conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and
Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2.
Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic
verification by CBP.
This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection
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, please contact
National Import Specialist Stacey Kalkines at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division