Importer Uses Little-Understood Provision to Reduce Duty on Women's Coat from 27.7% to 7.1%.

According to U.S. Customs and Border Protection: "Two of the most frequently misunderstood areas in the classification of wearing apparel under the Harmonized Tariff Schedule of the United States (HTSUS) are the coated and the water resistant provisions."

Harmonized System Heading 6210 provides for "Garments made up of fabrics of heading 5602, 5603, 5903, 5906 or 5907." In the Harmonized Tariff Schedule of the United States ("HTSUS") garments classified under 6210 are generally assessed a lower rate of duty than would be the case were the garment not made of one of those fabrics.

On October 19, 2015, CBP ruled (NY N269125) that in the case of a woman's mid-thigh length coat constructed of 68% polyester, 19% rayon, 7% cotton, 5% nylon and 1% wool woven fabric with a visible coating on the inner surface the applicable subheading for will be 6210.30.5000 HTSUS which provides for "Garments, made up of fabrics of heading 5602, 5603, 5903, 5906 or 5907: Other garments, of the type described in subheadings 6202.11 to 6202.19: Of man-made fibers: Other." The rate of duty will be 7.1 percent ad valorem. Had the fabric not been coated the classification would likely have been 6202.13.40 HTSUS, "Women's or girls' overcoats, carcoats, capes, cloaks, and similar coats; Of man-made fiber; Other; Other. The rate of duty for 602.13.40 is 27.7%

In this case the ruling was requested by the law firm Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP. They did not disclose the name of the client who will be the importer.

Agathon Associates has been called on frequently to assist clients with the proper tariff classification of coated fabrics and articles made of coated fabrics and has prepared with summary of the Harmonized Tariff Schedule of the United States provisions relating to coated textiles. This information is available to clients of Agathon Associates, subscribers to Agathon Associates' Trade Advisor Service, and students in David Trumbull's TMD 433 course at the University of Rhode Island. You will need to enter your username and password. If you do not know your username and password email David Trumbull at david@agathonassociates.com.