Recreational Performance Outerwear. Deanna Boldt National Import Specialist Customs & Border Protection February 1, 2018

Transcription

1 Recreational Performance Outerwear Deanna Boldt National Import Specialist Customs & Border Protection February 1,

2 The material in this presentation is advisory, not legally binding, and its content is subject to change. Reliance on the information alone may not be considered reasonable care. Because many complicated factors can be involved in Customs issues, an importer may wish to obtain a ruling under the Regulations of U.S. Customs and Border Protection, 19 C.F.R Part 177, or may wish to obtain advice from an expert who specializes in Customs matters, for example, a licensed Customs Broker, attorney or consultant. 2

3 The graphics contained within the presentation were taken from open source materials available on the Internet, and are included solely to provide visual context for the content provided. The inclusion of these graphics does not represent an endorsement or approval by CBP of any of these items or products and is strictly provided for educational purposes only. 3

4 National Commodity Specialist Division Textile and Apparel Branch Outerwear & Coated Garments Deanna Boldt NIS 357 San Diego, CA (619) John McCormack NISA 357 New York, NY (646)

5 NIS 357 Product Coverage All outerwear including coats, tops and bottoms (men, women and children 2T and above). Includes water resistant garments, coated garments, down/waterfowl and insulated garments that fall within this range. Primarily in HTSUS headings 6101, 6102, 6113, 6201, 6202 and Excludes leather, fur, artificial fur, rubber, and completely obscured (imitation leather) garments. 5

6 Recreational Performance Outerwear Trade Facilitation & Trade Enforcement Act of 2015 Implemented on August 22, 2016 Only affects Chapter 62 HTSUS numbers Approximately 313 additional 10-digit Tariff classification numbers Revenue neutral Additional U.S. Note 3 to Chapter 62 6

7 References & Resources General Rules of Interpretation GRI 1 classification shall be determined according to the terms of the headings and any relative section or chapter notes HTSUS Legal Notes Chapter 62 Headings 6201, 6202, 6210 Apparel Chapter 62 Notes Fabric Chapters 59 and 60 Notes Section XI Notes When taken together, these notes provide a very specific hierarchy for classifying woven garments of coated or treated fabrics. 7

8 References & Resources Additional U.S. Note 3(a) to Chapter 62 When used in a subheading of this chapter or immediate superior text thereto, the term 'recreational performance outerwear means trousers (including, but not limited to, ski or snowboard pants, and ski or snowboard pants intended for sale as parts of ski-suits), coveralls, bib and brace overalls, jackets (including, but not limited to, full zip jackets, ski jackets and ski jackets intended for sale as parts of ski-suits), windbreakers and similar articles (including padded, sleeveless jackets), the foregoing of fabrics of cotton, wool, hemp, bamboo, silk or manmade fibers, or a combination of such fibers; that are either water resistant within the meaning of additional U.S. note 2 to this chapter or treated with plastics, or both; with critically sealed seams, and with 5 or more of the following features (as further provided herein): 8

9 (i) insulated for cold weather protection; (ii) pockets, at least one of which has a zippered, hook and loop, or other type of closure; (iii) elastic, draw cord or other means of tightening around the waist or leg hems, including hidden leg sleeves with a means of tightening at the ankle for trousers and tightening around the waist or bottom hem for jackets; (iv) venting, not including grommet(s); (v) articulated elbows or knees; (vi) reinforcement in one of the following areas: the elbows, shoulders, seat, knees, ankles or cuffs; (vii) weatherproof closure at the waist or front; (viii) multi-adjustable hood or adjustable collar; (ix) adjustable powder skirt, inner protective skirt or adjustable inner protective cuff at sleeve hem; (x) construction at the arm gusset that utilizes fabric, design or patterning to allow radial arm movement; or (xi) odor control technology The term recreational performance outerwear does not include occupational outerwear. 9

10 Recreational Performance Outerwear Additional U.S. Note 3(a) to Chapter 62 Trousers Coveralls Bib and brace overalls Jackets Windbreakers and Similar articles Padded sleeveless jackets 10

11 Recreational Performance Outerwear Additional U.S. Note 3(a) to Chapter 62 Cotton Wool Hemp Bamboo Silk Man-Made Fibers Combination of the above Fibers 11

12 Recreational Performance Outerwear Not included in Additional U.S. Note 3 Fur Knit Garments Coats Linen 12

13 Recreational Performance Outerwear Additional U.S. Note 3(a) to Chapter 62 Water resistant within the meaning of additional U.S. note 2 to this chapter or Treated with plastics or Water resistant and treated with plastics 13

14 Not Knit (Woven) Outerwear Garments Water Resistant Garments HTSUS Chapter 62, Additional U.S. Note 2 defines the term water resistant Means that garments classifiable in water resistant subheadings must have a water resistance such that, under a head pressure of 600 millimeters, not more than 1.0 gram of water penetrates after two minutes when tested in accordance with the current version of AATCC Test Method 35. This water resistance must be the result of a rubber or plastics application to the outer shell, lining or inner lining. 14

15 Not Knit (Woven) Outerwear Garments Water Resistant Garments Components or inserts of any knit fabric (including mesh) will disqualify the garment from this classification, except if the knit fabric is lined with a water resistant fabric. For example, woven fabric body with knit sleeves lined with water resistant fabric. N This garment is eligible for classification as water resistant. Due to the presence of treated lining fabric under the sleeves, the garment is composed of a combination of shell and lining fabric that provides complete coverage. 15

16 Not Knit (Woven) Outerwear Garments Water Resistant Garments Components or inserts of any knit fabric (including mesh) will disqualify the garment from this classification, except if the essential character of the garment is determined to be woven and both components pass the water resistant test specified in Additional U.S. Note 2 to chapter 62. For example, woven fabric body with knit sleeves. Both the woven fabric body and the knit sleeves are water resistant. 16

17 Not Knit (Woven) Outerwear Garments Water Resistant Garments Untreated Inserts or Perforations Perforations for ventilation, or inserts of knit fabric disqualify the garment for the water resistant provisions. The entire garment must be water resistant, not just part of the garment. 17

18 Not Knit (Woven) Outerwear Garments Water Resistant Garments Shell, Lining or Inner Lining If the lining or inner lining is the treated fabric, then the lining must extend edge to edge, or else the garment is not water resistant. This photo is for illustrative purposes only. The garment pictured is not necessarily an anorak or similar garment. 18

19 Not Knit (Woven) Outerwear Garments Water Resistant Garments Hoods Hoods are not required to meet the water resistance test under Additional Note 2 to Chapter 62. HQ A detachable hood is an accessory to the garment and not an integral part thereof, it need not be water resistant. 60 FR (June 13, 1995) -- the garments feature hoods which may or may not be permanently attached to the garment or may be tuck away hoods which fold into the collar. In most cases these hoods are not coated. Regardless of these additional features, the garment itself remains water resistant. Thus, a water resistant garment with no hood is no less water resistant than a garment with a hood. 19

20 Not Knit (Woven) Outerwear Garments Water Resistant Garments Knit Collars, Cuffs, and Waistbands Trimming is not required to meet the water resistance test under Additional Note 2 to Chapter FR (June 13, 1995) -- some [garments] may have rib knit cuffs and collars, and other decorative trim which are not water resistant. Regardless of these additional features, the garment itself remains water resistant. 20

21 Not Knit (Woven) Outerwear Garments Water Resistant Garments Lab Testing Quilted Garments Save an unquilted sample of identical fabric in the event CBP tests the garment for water resistance. HQ It is our view that any time a garment does not contain a sufficient area of fabric to allow testing for water resistance without including a seam or quilting stitches, an attempt should be made to obtain a swatch of identical fabric for testing. If such a swatch is not furnished, then the fabric which contains a plastics application should be tested in its condition as found in the garment (including seams, but minus any padding if the fabric is quilted). 21

22 Not Knit (Woven) Outerwear Garments Water Resistant Garments Lab Testing and Ruling Language CBP does not routinely lab test garments for water resistance. Instead rulings will state that a sample is eligible for classification as water resistant. Occasionally, CBP may test a garment submitted with a ruling request for water resistance. It is important to note, however, that a ruling holding that a garment is water resistant will not overcome a CBP laboratory finding found at the time of importation to the contrary. The facts and findings for an actual shipment will prevail. 22

23 References and Resources Additional U.S. Note 3(b)(i) to Chapter 62 the term treated with plastics refers to textile fabric impregnated, coated, covered or laminated with plastics, as described in note 2 to chapter

24 24

25 References and Resources Note 2 to Chapter 59 Heading 5903 applies to: (a) Textile fabrics, impregnated, coated, covered or laminated with plastics, whatever the weight per square meter and whatever the nature of the plastic material (compact or cellular), other than: (1) Fabrics in which the impregnation, coating or covering cannot be seen with the naked eye Note 2(a)(1) Fabric treated with plastic must be visible to the naked eye. 25

26 Fabrics of Heading 5903 HTSUS Chapter 59 Heading 5903 Does NOT Apply To: Fabrics in which the impregnation coating or covering cannot be seen with the naked eye (usually chapters 50 to 55, 58 or 60) for the purpose of this provision, no account should be taken of any resulting change of color. 26

27 Fabrics of Headings 5903 HTSUS Chapter 59 Heading 5903 HQ : before using magnification, it is Customs practice to examine textiles with the naked eye alone in order to ascertain whether a coating is present. If nothing resembling a coating is observed, the fabric will not be considered coated for classification purposes. HQ : but if visual examination suggests the presence of a coating, it is within Customs discretion to examine the fabric under magnification. 27

28 Fabrics of Heading 5903 HTSUS Chapter 59 Heading 5903 Fabric Face Shine suggests the presence of a coating 28

29 Fabrics of Heading 5903 HTSUS Chapter 59 Heading 5903 Magnified Shine created by light reflecting off filaments. There is no coating. 29

30 Fabrics of Heading 5903 HTSUS Chapter 59 Heading 5903 Oxford Weave Shiny surface. 30

31 Fabrics of Heading 5903 HTSUS Chapter 59 Heading 5903 Oxford Weave Magnified No change in surface character of fabric, no filling of interstices and no blurring of fibers or filaments that make up the yarns. 31

32 Fabrics of Heading 5903 HTSUS Chapter 59 Heading 5903: 2(a)(1) Fabrics in which the impregnation, coating or covering cannot be seen with the naked eye (usually chapters 50 to 55, 58, or 60); for the purpose of this provision, no account should be taken of any resulting change of color. The criterion for visibility may be satisfied by any one of the following: A change in the surface character of the fabric (HQ , November 11, 1998) The coating fills the interstices where the yarns intersect (HQ , August 6, 1998) The coating blurs or obscures the weave (HQ , September 11, 1991) Note the ability to feel the coating, or the perception of stiffness in the fabric will not render an item coated for tariff purposes. 32

33 Fabrics of Heading 5903 HTSUS Chapter 59 Heading 5903: 2(a)(1) Fabrics in which the impregnation, coating or covering cannot be seen with the naked eye (usually chapters 50 to 55, 58, or 60); for the purpose of this provision, no account should be taken of any resulting change of color. 33

34 Fabrics of Heading 5903 HTSUS Chapter 59 Heading 5903 Does NOT Apply To: 2(a)(3) Products in which the textile fabric is either completely embedded in plastics or entirely coated or covered on both sides with such material, provided that such coating or covering can be seen with the naked eye with no account being taken of any resulting change of color (chapter 29). Articles (including Garments) made from certain fabrics coated with plastics, if entirely coated or covered on both sides with plastics, are classified in Chapter 39 as Articles of Plastic. NOT classified in Chapter 61 or

35 Fabrics of Heading 5903 HTSUS Chapter 59 Heading 5903 Does NOT Apply To: 5903: 2(a)(4) Fabrics partially coated or partially covered with plastics and bearing designs resulting from these treatments (usually chapters 50 to 55, 58, 60) If the coating is applied in a pattern or with a design, then the fabric is not classified in Chapter

36 Fabrics of Heading 5903 HTSUS Chapter 59 Heading 5903 Does NOT Apply To: 5903: 2(a)(4) Fabrics partially coated or partially covered with plastics and bearing designs resulting from these treatments (usually chapters 50 to 55, 58, 60) There is no exclusion for fabrics covered with plastic which are subsequently printed with a design. These fabrics remain eligible for classification in

37 Fabrics of Heading 5903 HTSUS Chapter 59 Heading 5903 Does NOT Apply To: 2(a)(6) Textile products of heading 5811 HTSUS heading 5811: Quilted textile products in the piece, composed of one or more layers of textile materials assembled with padding by stitching or otherwise in the piece means fabrics that have not yet been cut into components 37

38 Fabrics of Heading 5903 HTSUS Chapter 59 Heading 5903 Does NOT Apply To: (6) Textile products of heading 5811 Classifying garments made up of coated fabrics, such as the jacket shown here, will require detailed information about the steps of the manufacturing process. In order for the fabric to be of Chapter 59, the quilting cannot be done until after the fabric is cut into garment components. 38

39 For Illustrative purposes only. The fabric pictured is Not coated. Cut to shape Quilted in the piece 39

40 Fabric Cut to Shape For Illustrative purposes only. The fabric pictured is NOT coated 40

41 Quilted Pieces Sandwiched Together 41

42 Fabrics of Heading 5903 HTSUS Chapter 59 Heading 5903 Does NOT Apply To: (6) Textile products of heading Cutting of coated fabric into garment pc ->2.Quilting fabric & padding together-> 3.Sewing separate pcs together ->4.Attaching zippers & hood and finish the garment. Visibly Coated fabric is of heading 5903, not heading 5811, because it was cut before being quilted. 42

43 Fabrics of Heading 5903 HTSUS Chapter 59 Laminated Fabrics Laminated Fabric: A layered fabric structure in which the outer layer is joined either by flame bonding, dry heat, or an adhesive to a continuous sheet of material, such as PU foam, and this in turn, may be joined to such backing fabric as tricot. The foam or other sheet material retains its identity. ~ Fairchild s Dictionary of Textiles 8 th Edition 43

44 Fabrics of Heading 5903 HTSUS Chapter 59 Explanatory Note to heading 5903 The laminated fabrics of this heading should not be confused with fabrics which are simply assembled in layers by means of a plastic adhesive. These fabrics, which have no plastics showing in crosssection, generally fall in chapters Laminated fabrics can still meet the criterion for the coating, i.e. the plastic, to be visible to the naked eye. As long as the plastic is clearly visible, either in cross-section or through one of the fabric layers, then the plastic laminated fabric is classified in Heading

45 Fabrics of Heading 5903 HTSUS Chapter 59 Laminated Fabrics Plastic (white layer) is visible in cross section. 45

46 Fabrics of Heading 5903 HTSUS Chapter 59 Laminated Fabrics Plastic (white layer) is visible in cross section. 46

47 Fabrics of Heading 5903 HTSUS Chapter 59 Laminated Fabrics HQ : CBP will examine whether the plastic is visible through one of the assembled layers of fabric, and when one of the layers is loosely knitted or woven, may consider the coating visible. Example: Fabric where the plastic coating is visible through the mesh. 47

48 Fabrics of Heading 5903 HTSUS Chapter 59 Laminated Fabrics The tariff calls for visibility to the naked eye. Peeling layers of fabric apart to detect the coating is considered an unacceptable manipulation. 48

49 Fabrics of Heading 5903 HTSUS Chapter 59 Laminated Fabrics Laminated fabrics where one of the layers of cloth is a knit pile fabric will not be classified in Chapter 59. The legal notes tell us that knit pile fabrics remain classified in heading 6001 even if coated. Whether a laminate or plain pile, coated knit pile fabrics cannot be classified in Chapter 59. And if used as a layer in a laminated fabric construction, the laminated fabric becomes a knit pile fabric of heading 6001, even if the other fabric layer is woven. HTSUS Chapter 60 Note 1 (c) However, knitted or crocheted pile fabrics, impregnated, coated, covered or laminated, remain classified in heading

50 Fabrics of Heading 5903 HTSUS Chapter 59 Laminated Fabrics Ch. 59, Note 1: Except where the context otherwise requires, for the purposes of this chapter the expression textile fabrics applies only to the woven fabrics of chapter 50 to 55 and headings 5803 and 5806, the braids and ornamental trimmings in the piece of heading 5808 and the knitted or crocheted fabrics of headings 6002 to HTSUS Chapter 60 Note 1 (c) However, knitted or crocheted pile fabrics, impregnated, coated, covered or laminated, remain classified in heading

51 Fabrics of Heading 5903 HTSUS Chapter 59 Laminated Fabrics Today, it is common for outerwear garments to be made of a laminated fabric utilizing a woven fabric for the outer surface with an inner surface that is of knit construction. Usually, classification is done by the outer surface. However, if that inner knit fabric is of pile construction, the legal notes tell us the fabric is knit. Therefore, the garment is knit. HQ Note 1(c) to Chapter 60 means, in effect, that multilayered materials which contain both pile fabric and non-pile fabric are classified based upon the pile fabric. 51

52 References and Resources Additional U.S. Note 3(b) to Chapter 62 52

53 References and Resources Additional U.S. Note 3(b)(ii) to Chapter 62 The term sealed seams means seams that have been covered by means of taping, gluing, bonding, cementing, fusing, welding or a similar process so that air and water cannot pass through the seams when tested in accordance with the current version of AATCC Test Method 35. Seams must pass water resistance test. 53

54 References and Resources Additional U.S. Note 3(b)(iii) to Chapter 62 The term critically sealed seams means (A) For jackets, windbreakers and similar articles (including padded, sleeveless jackets), sealed seams that are sealed at the front and back yokes, or at the shoulders, arm holes, or both, where applicable; and (B) For trousers, overalls and bib and brace overalls and similar articles, sealed seams that are sealed at the front (up to the zipper or others means of closure) and back rise. 54

55 Front and Back Yokes Additional U.S. Note 3(b)(iii) to Chapter 62 Back Yoke Front Yoke 55

56 Shoulder Seams and Arm Holes Additional U.S. Note 3(b)(iii) to Chapter 62 Shoulder Seam Arm Hole 56

57 Yokes, Arm Holes, and Shoulder Seams Additional U.S. Note 3(b)(iii) to Chapter 62 Arm Hole Seam Shoulder Seam For jackets containing multiple seams, all must be critically sealed. Yoke Seam 57

58 Front Seams and Back Rise Additional U.S. Note 3(b)(iii) to Chapter 62 Back Rise Front Seams up to the Zipper Front Seams do not include inseams. 58

59 Front Seams and Back Rise Additional U.S. Note 3(b)(iii) to Chapter 62 Sealed rise of lining/interlining meets definition of critically sealed seam for front/back rise. 59

60 References and Resources Additional U.S. Note 3(b)(iv) to Chapter 62 the term insulation for cold weather protection means insulation that meets a minimum clo value of 1.5 per ASTM F Clo = m 2 K/W Clo = 1 - corresponds to the insulating value of clothing needed to maintain a person in comfort sitting at rest in a room at 21 (70 ) with air movement of 0.1 m/s and humidity less than 50% - typically a person wearing a business suit 60

61 References and Resources Additional U.S. Note 3(b)(v) to Chapter 62 the term venting refers to closable or permanent constructed openings in a garment (excluding front, primary zipper closures and grommet(s)) to allow increased expulsion of built-up heat during outdoor activities. Closable Vent Permanent Vent 61

62 Jacket Venting Additional U.S. Note 3(b)(v) to Chapter 62 In a jacket, such openings are often positioned on the underarm seam of a garment but may also be placed along other seams in the front or back of a garment. Underarm Vent 62

63 Jacket Venting Additional U.S. Note 3(b)(v) to Chapter 62 In a jacket, such openings are often positioned on the underarm seam of a garment but may also be placed along other seams in the front or back of a garment. Side Vent Back Vent 63

64 Trouser Venting Additional U.S. Note 3(b)(v) to Chapter 62 In trousers, such openings are often positioned on the inner or outer leg seams of a garment but may also be placed along other seams in the front or back of a garment. Inner Leg Vent Outer Leg Vent 64

65 Trouser Venting Additional U.S. Note 3(b)(v) to Chapter 62 In trousers, such openings are often positioned on the inner or outer leg seams of a garment but may also be placed along other seams in the front or back of a garment. Inner Leg Vent Back Vent 65

66 References and Resources Additional U.S. Note 3(b)(vi) to Chapter 62 The term articulated elbows or knees refers to the construction of a sleeve (or pant leg) to allow improved mobility at the elbow (or knee) through the use of extra seams, darts, gussets or other means. 66

67 References and Resources Additional U.S. Note 3(b)(vii) to Chapter 62 The term reinforcement refers to the use of a double layer of fabric or section(s) of fabric that is abrasion-resistant or otherwise more durable than the face fabric of the garment. 67

68 References and Resources Additional U.S. Note 3(b)(viii) to Chapter 62 The term waterproof closure means a closure (including, but not limited to, laminated or coated zippers, storm flaps or other weatherproof construction) that has been reinforced or engineered in a manner to reduce the penetration or absorption of moisture or air through an opening in the garment. 68

69 References and Resources Additional U.S. Note 3(b)(ix) to Chapter 62 The term 'multi-adjustable hood' or adjustable collar' means, in the case of a hood, a hood into which is incorporated two or more draw cords, adjustment tabs or elastics, or, in the case of a collar, a collar into which is incorporated at least one draw cord, adjustment tab, elastic or similar component, to allow volume adjustments around a helmet, or around the crown of the head, neck, or face. 69

70 Multi-adjustable Hood Additional U.S. Note 3(b)(ix) to Chapter 62 the term 'multi-adjustable hood' a hood into which is incorporated two or more draw cords, adjustment tabs or elastics to allow volume adjustments around a helmet, or around the crown of the head, neck, or face. Inner Leg Vent 70

71 Adjustable Collar Additional U.S. Note 3(b)(ix) to Chapter 62 the term adjustable collar' means, a collar into which is incorporated at least one draw cord, adjustment tab, elastic or similar component, to allow volume adjustments around a helmet, or around the crown of the head, neck, or face. Inner Leg Vent 71

72 References and Resources Additional U.S. Note 3(b)(x) to Chapter 62 The terms 'adjustable powder skirt' and 'inner protective skirt' refer to a partial lower inner lining with means of tightening around the waist for additional protection from the elements. 72

73 References and Resources Additional U.S. Note 3(b)(xi) to Chapter 62 The term arm gusset means construction at the arm of a gusset that utilizes an extra fabric piece in the underarm, usually diamond- or triangular-shaped, designed or patterned to allow radial arm movement. Diamondshaped gusset 73

74 References and Resources Additional U.S. Note 3(b)(xii) to Chapter 62 The term radial arm movement refers to unrestricted 180-degree range of motion for the arm while wearing performance outerwear. 74

75 References and Resources Additional U.S. Note 3(b)(xiii) to Chapter 62 The term odor control technology means the incorporation into a fabric or garment of materials, including but not limited to activated carbon, silver, copper or any combination thereof, capable of adsorbing, absorbing, or reacting with human odors, or effective in reducing the growth of odor-causing bacteria. 75

76 References and Resources Additional U.S. Note 3(a)(ii) to Chapter 62 Pockets, at least one of which has a zippered, hook and loop, or other type closure. 76

77 References and Resources Additional U.S. Note 3(a)(iii) to Chapter 62 elastic, draw cord or other means of tightening around the waist or leg hems, including hidden leg sleeves with a means of tightening at the ankle for trousers and tightening around the waist or bottom hem for jackets. 77

78 References and Resources Additional U.S. Note 3(b)(xiv) to Chapter 62 The term occupational outerwear means outerwear garments, including uniforms, of a kind principally used in the work place and specially designed to provide protection from work place hazards such as fire, electrical, abrasion or chemical hazards, or impacts, cuts and punctures. 78

79 References and Resources Additional U.S. Note 3(c) to Chapter 62 The importer, of goods entered as recreational performance outerwear under a particular subheading of this chapter, shall maintain records demonstrating that the entered goods meet the terms of this note, including such information as is necessary to demonstrate the presence of the specific features that render the goods eligible for classification as recreational performance outerwear. 79

80 Recreational Performance Outerwear Classification Requirements Summary Garment type must be: trousers, coveralls, bib and brace overalls, jackets, windbreakers and similar articles. Must be constructed from fabrics of: cotton, wool, hemp, bamboo, silk or manmade fibers, or a combination of such fibers. Must be water resistant within the meaning of Additional US Note 2 to Chapter 62 or be treated with plastic within the meaning of Note 2 to chapter 59 or be treated with plastic and water resistant. Contain critically sealed seams. Contain 5 of 11 features named in Additional US Note 3 to Chapter

81 National Commodity Specialist Division Textile and Apparel Branch Outerwear & Coated Garments Deanna Boldt NIS 357 San Diego, CA (619) John McCormack NISA 357 New York, NY (646)