USFIA/PwC. New York City November 8 th, 2016

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1 USFIA/PwC New York City November 8 th, 2016

2 The material in this presentation is provided for guidance and general information purposes only. Reliance on this 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.

3 Today s Topics: CBP Binding Rulings Informed Compliance Publications Chapter 62 Topics Recreational Performance Outerwear Q&A

4 What is a Binding Ruling? A Binding Ruling is a written decision in the form of a letter issued by Regulations and Rulings pursuant to 19 CFR Part 177 that tells the requester how CBP will treat a good when it is imported into the United States.

5 Benefits of Binding Rulings The Binding Ruling process provides the international trade community with a transparent and efficient means of understanding how CBP will treat a particular import once it arrives in the United States Rulings are readily available to the public for import guidance Rulings will not be changed without notice to the importer Most rulings are never modified or revoked Rulings are free

6 Who can request a ruling? A ruling may be requested under Part 177 of the CBP Regulations (19 C.F.R. Part 177) by any person who, as an importer or exporter of merchandise, or otherwise, has a direct and demonstrable interest in the question or questions presented in the ruling request, or by the authorized agent of such person.

7 Where are rulings published? Rulings are published on the Customs Rulings Online Search System (CROSS), which is a searchable system available to the public at rulings.cbp.gov.

8 Who writes prospective ruling letters? Regulations and Rulings 1. Headquarters 2. National Commodity Specialist Division (NCSD) Metals and Machinery Agricultural and Chemicals Miscellaneous Products Textiles and Apparel

9 HQ Rulings: Valuation, including regional value content under FTAs Vessels and Carriers Restricted Merchandise Intellectual Property Duty Drawback Temporary Importation Under Bonds Foreign Trade Zones Bonded Warehouses Merchandise Processing Fees Government Procurement or Buy America Entry and Collection Procedures

10 NCSD Rulings: Tariff classification Country of origin Country of origin marking Preferential treatment under Free Trade Agreements (other than questions concerning regional value content) Preferential treatment under special trade programs

11 Textiles and Apparel Branch NIS Rosemarie Hayward NIS 349, Vacant NIS Adleasia Lonesome NIS Maribeth Dunajski NIS Lenore Calabrese NIS Maryalice Nowak NIS Deanna Boldt NIS Kimberly Wachtel NIS Renee Orsat NIS Kimberly Rackett NIS Antoinette Peek-Williams NIS Stacey Kalkines

12 How do I request a ruling from the NCSD? Director, National Commodity Specialist Division Regulations and Rulings Office of Trade 201 Varick Street Suite 501 New York, NY Attn: Ruling Request Federal Register / Vol. 81, No. 209 / Friday, October 28, 2016 / Rules and Regulations

13 Ruling Request Guidelines: Ruling requests must concern prospective shipments and be in writing. Rulings will not be issued in response to oral requests. Requests will contain a maximum of five items. The items in a single request must be of the same class or kind. For example, a request concerning textile articles may not include items such as footwear. Envelopes and packages should be marked Binding Ruling Request. A copy of the ruling or the ruling control number should be provided with the entry documents filed at the time the merchandise is imported.

14 Ruling requests should include: Names, addresses, and other identifying information of all interested parties The port in which the merchandise will be entered A description of the good in imported condition Component materials Illustrative literature, sketches, digital photographs, and lab reports, if applicable A statement that there are, to the importer s knowledge, no issues on the commodity pending before Customs or any court A statement as to whether classification advice has been previously sought from CBP

15 What if a ruling is incorrect? If the ruling letter is fewer than 60 days old, CBP may issue a new ruling indicating that the previous ruling has been modified or revoked. The new ruling will be effective upon publication. If the ruling is more than 60 days old, notice and comment procedures must be followed (Customs Bulletin).

16 Electronic Requests ( erulings ) Electronic Ruling Requests: eruling Template:

17 Textiles and Apparel Ruling Requests Samples Size Medium

18 AN INFORMED COMPLIANCE PUBLICATION What Every Member of the Trade Community Should Know About: U.S. Customs & Border Protection Rulings Program informed_compliance_pubs/

19 What is an ICP?

20 INFORMED COMPLIANCE PUBLICATION "What Every Member of the Trade Community Should Know About..."

21 Just a Few Examples Beauty and Skin Care Products of Heading 3304 Buying & Selling Commissions Caviar Classification and Marking of Watches and Clocks Coffee Colored Bubble Glass (and Other Special Types of Glassware) Customs Enforcement of Intellectual Property Rights Customs Value Eyewear Frames and Eyewear Footwear Machine Tools Mushrooms Peanuts and their Classification under the HTSUS Works of Art, Collector's Pieces, Antiques, and Other Cultural Property

22 Textile/Apparel ICP Examples: Classification of Children's Apparel Classification of Coated/Water Resistant Apparel Classification of Hats and Other Headgear Classification of Knit to Shape Apparel Garments Country of Origin of Knit to Shape Apparel Products Fiber Trade Names & Generic Terms Fibers & Yarns Construction and Classification Gloves, Mittens & Mitts, Not Knitted or Crocheted NAFTA for Textiles & Textile Articles Classification of Textile Costumes

23 INFORMED COMPLIANCE PUBLICATIONS informed-compliancepublications

24 What Every Member of the Trade Community Should Know About: Classification: Apparel Terminology under the HTSUS publications/classificationapparel-terminology-underhtsus

25 Chapter 62 Topics

26 Blouses of Chapter blouses, shirts and shirt-blouses 6211 Blouses, shirts and shirt-blouses, sleeveless tank styles and similar upper body garments - excluded from heading 6206

27 Apparel Terminology ICP Heading 6206 excludes garments with pockets below the waist, a ribbed waistband or other means of tightening at the bottom of the garment (although to be excluded from heading 6206, the tightening must be at the bottom of the garment, not above, i.e. at the waist). Such garments may be classified as blouses, shirts or shirt-blouses in heading 6211.

28 Tightening at the bottom What do we consider the bottom of a garment? Does it mean anywhere below the middle of the garment? Is it the waist? Is it near the bottom?

29 HQ drawstring threaded waist which is several inches above the bottom of the garment we must adhere to the strict interpretation given to the phrase "with a ribbed waistband or other means of tightening at the bottom of the garment..." the tightening described must be at the bottom of the garment, regardless of whether it is ribbed knit or some other type of tightening, such as a drawstring

30 HQ wrap style garment reaches the waistline it must be fastened by crossing the right front panel over the left front panel which must then be tied together

31 Tightening at the bottom

32 No tightening at the bottom

33 Coverage and Sheerness

34 A Blouse B Blouse excluded from 6206

35 A Blouse B Blouse excluded from 6206

36 HQ sheerness per se does not preclude use of the garment as a blouse.

37 U.S. Customs & Border Protection National Commodity Specialist Division Regulations and Rulings Office of Trade Textiles and Apparel Branch Directory

38 NIS 348 Rosemarie Hayward Clothing accessories made of textile, fur, rubber and artificial fur, such as scarves, belts, etc,, Apparel of Fur, Artificial fur, rubber, and Leather (Men, Women, and Children s sizes 2T and above). Articles of fur and artificial fur (besides apparel). Swimwear (Men and Women). Sleepwear, Bathrobes, Beach Cover-ups (Men and Women). Specialty garments such as clerical, dance, karate, scholastic, aprons, specialty sports. Apparel (well-made costumes, novelty). NIS 349 Vacant Blankets, bed linen, table linen, toilet linen, kitchen linen, textile furnishings, wall hangings, curtains, drapes, towels, throws, tapestries, cleaning cloths, textile floor coverings, rugs, carpeting, linoleum.

39 NIS 350 Vacant Wadding, felt, non-woven fabrics, coated/filled fabric, machine belts, technical use textiles, trimmings, narrow woven fabrics & ribbons. NIS 351 Adleasia Lonesome Fibers, yarns, rope, cordage, fish nets & netting, packing bags, tents, rags, umbrellas, aprons, miscellaneous textile articles (except apparel & furnishings). NIS 352 Maribeth Dunajski Fabrics: uncoated woven, knitted or crocheted; pile, chenille, terry; embroidery; tulle; lace.

40 NIS 354 Lenore Calabrese Gloves, underwear (men s and women s), body supporting garments, hosiery. NIS 356 Maryalice Nowak MARYALICE.NOWAK@CBP.DHS.GOV All men s knit and woven tops, bottoms, and full body garments (suits, ensembles, track suits). EXCLUDES specialty garments, sleepwear, bathrobes, beach cover-ups, swimwear and outerwear. EXCLUDES coated, water resistant, completely obscured (imitation leather), insulated for cold weather, rubber, fur, artificial fur, down/waterfowl, and leather garments.

41 NIS 357 Deanna Boldt All outerwear including coats, tops and bottoms (Men, Women, and Children sizes 2T and above). INCLUDES water resistant garments, coated garments, down/waterfowl and insulated garments for cold weather. EXCLUDES leather, fur, artificial fur, and rubber. NIS 358 Kimberly Wachtel Apparel: children s, size newborn to girls 16 and boys 20 (except: coats and jackets worn for protection against the elements, ski suits and other coated garments, sizes 2T and above), worn clothing, headgear and visors.

42 NIS 359 Renee Orsat Women s knitted or crocheted tops (sweaters, pullovers or vests) and full-body garments (suits, dresses, ensembles, track suits EXCLUDES specialty garments, sleepwear, bathrobes, beach cover-ups, swimwear and outerwear. EXCLUDES coated, water resistant, completely obscured (imitation leather), insulated for cold weather, rubber, fur, artificial fur, down/waterfowl, and leather garments NIS 360 Kimberly Rackett KIMBERLY.RACKETT@CBP.DHS.GOV All women s not knitted or crocheted tops, bottoms, and full-body garments (suits, dresses, ensembles, track suits). EXCLUDES specialty garments, sleepwear, bathrobes, beach cover-ups, swimwear and outerwear. EXCLUDES coated, water resistant, completely obscured (imitation leather), insulated for cold weather, rubber, fur, artificial fur, down/waterfowl, and leather garments.

43 NIS 361 Antoinette Peek-Williams Women s knitted or crocheted shirts, blouses, T-shirts, tank tops, and bottoms (skirts, pants, shorts). EXCLUDES specialty garments, sleepwear, bathrobes, beach cover-ups, swimwear and outerwear. EXCLUDES coated, water resistant, completely obscured (imitation leather), insulated for cold weather, rubber, fur, artificial fur, down/waterfowl, and leather garments. NIS 447 Stacey Kalkines STACEY.KALKINES@CBP.DHS.GOV Footwear; Parts of Footwear; removable insoles, heel cushions, and similar articles; gaiters, leggings and similar articles and parts thereof.

44 Kimberly Rackett National Import Specialist U.S. Department of Homeland Security 201 Varick Street Suite 501 New York, NY U.S. Customs and Border Protection

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