Customs Classification: Outerwear David J. Evan 599 Lexington Avenue, New York, New York 10022 Tel.: 212-557-4000; Fax: 212-557-4415; e-mail: devan@gdlsk.com September 29, 2016 1
Outerwear Classification Jacket v. Coat Water Resistant Garments Visibly Coated New - Recreational Performance Outerwear Plastic Apparel 2
Outerwear Classification Chapter 62 Woven Apparel 6201/6202 Water resistant 6210 Visibly Coated Chapter 39 (HTS 3926) Plastic Apparel New Subheadings added to Headings 6201/6202 for Recreational Performance Outerwear effective August 22, 2016. This also resulted in new tariff #s for other garments in Chap. 62 (but same duty rates) 3
Coats v. Jackets - 6201/6202 No single feature will determine classification Length is no longer the primary indicator Has become more subjective 4
Coats v. Jackets - 6201/6202 Indicative of Jackets 1. From neck to waist; less than mid-thigh 2. Full or partial front opening 3. Slimmer cut 4. Tightening at cuffs/wrists 5. Zipper closure Indicative of Coats 1. Thigh length or longer 2. Full front opening 3. Fuller cut 4. No tightening at cuffs/wrists 5. Button closure 5
Coats & Jackets - (6201/6202) Item House v. U.S. Complaint filed 9/9/19 Gov t response due 11/14/16 No informal advice or binding rulings until case is resolved 6
Water Resistance - (Chapter 62) Only woven garments are eligible (cotton and MMF anoraks/jackets, synthetic pants, bib & brace overalls, ski suits) Not eligible: overcoats, car coats, raincoats, capes, etc. Must have an application of rubber or plastic to the shell, lining or inner lining. Must pass water resistance test (Chapter 62 U.S. Note 2) No gaps in coating permitted (edge to edge) (exceptions: hoods, cuffs, collars, waistbands do not need to pass) Quilted fabric can qualify but need unquilted production fabric if Customs wants to test. Woven outer shell bonded to a pile knit fabric classifiable as knit and will not qualify. Infants garments (sizes 0 to 24 months) do not qualify. 7
Visibly Coated - (6113, 6210) Applies to knit or woven; not limited to outerwear. Must be visibly coated, laminated, etc. with rubber or plastic on inner or outer surface of the outer shell. No performance test like water resistance; must be visible to naked eye (subjective test); change in color alone does not qualify. For quilted shells, fabric must be quilted after components are cut 8
Visibly Coated Exceptions: Outershell bonded to pile knit will be a knit and will not qualify Infants garments (0 to 24 months) do not qualify Woven down-filled garments do not use visibly coated fabric; Down (4.4%) loses to visibly coated (7.1%). 9
Recreational Performance Outerwear New tariff provisions in Chap 62 took effect 8/22/16 Trousers, coveralls, bib & brace overalls, jackets, padded sleeveless jackets Cotton, wool, hemp, bamboo, silk, MMF Either water resistant or visibly coated, or both; With critically sealed seams, and With 5 or more of the following features: 10
Recreational Performance Outerwear Requirements: Water resistant or visibly coated, or both; Critically sealed seams, and 5 or more of the following features: 1. Insulated for cold weather protection; 2. Pockets, at least one of which has a zippered, hook and loop, or other type of closure; 3. 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; 4. Venting, not including grommet(s); 5. Articulated elbows or knees; 6. Reinforcement in one of the following areas: the elbows, shoulders, seat, knees, ankles or cuffs; 7. Weatherproof closure at the waist or front; 8. Multi-adjustable hood or adjustable collar; 9. Adjustable powder skirt, inner protective skirt or adjustable inner protective cuff at sleeve hem; 10. Construction at the arm gusset that utilizes fabric, design or patterning to allow radial arm movement; or 11. Odor control technology 11
Recreational Performance Outerwear A lot of definitions: 'Sealed seams' - 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. '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 other means of closure) and back rise. 'Insulation for cold weather protection' - insulation that meets a minimum clo value of 1.5 per ASTM F 2732. '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. 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. In trousers, such openings are often positions 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. 12
Recreational Performance Outerwear '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. '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. 'Weatherproof 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. '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. '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. 'Radial arm movement' refers to unrestricted 180-degree range of motion for the arm while wearing performance outerwear. '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. Recordkeeping - The importer must maintain records demonstrating compliance and presence of the specific required features. 13
Plastic Apparel- 3926 Compact or cellular plastic with no fabric backing = 5% Cellular plastic with fabric backing for reinforcement purposes only = 5% Plastic Rainwear, including jackets, coats, ponchos, parkas and slickers, featuring an outer shell of PVC with or without attached hoods, valued not over $10/unit = Free 14
Questions? David J. Evan GDLSK LLP 599 Lexington Ave., 36 th Floor New York, N.Y. 10022 Direct: 212-973-7725 devan@gdlsk.com 15
NOTICE AND DISCLAIMER 2016. Copyright Notice - All materials contained herein are protected by United States copyright law and international conventions, and is the exclusive property of Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP. The materials may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP. You may not alter or remove any trademark, copyright or other notice from copies of the content. Reproduction of part or all of the contents in any form is prohibited other than for individual use only and may not be recopied and shared with a third party. Disclaimer. The information contained herein is provided for informational purposes only. The information is not offered as legal or any other advice on any particular matter and should not be construed as legal advice on any subject matter. The content herein contains general information and may not reflect current legal developments, verdicts or settlements. Recipients of content from this materials, clients or otherwise, should not act or refrain from acting based on any content without seeking from an attorney licensed in the recipient's state the appropriate legal or other professional advice on the facts and circumstances applicable to the specific situation. Grunfeld Desiderio expressly disclaims all liability in respect to actions taken or not taken based on the contents herein. 16